What powers does the All Team Secured Party have as attorney-in-fact?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
make payments directly to Secured Party; (ii) collect Accounts or Chattel paper in Debtor's name and take control of any proceeds of Accounts or Chattel Paper and of any returned or repossessed Goods; and (iii) compromise, extend or renew any Account or Chattel paper or deal with the same as Secured Party may deem advisable.
- (c) Power of Attorney. Debtor appoints Secured Party as Debtor's attorney-in-fact with full power and authority, to endorse and collect all drafts, checks, or other instruments or items that are payable to Debtor that come into the possession of Secured Party and apply all amounts collected to the Liabilities.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the Secured Party is granted specific powers as the Debtor's attorney-in-fact. The Secured Party can endorse and collect all drafts, checks, or other instruments payable to the Debtor that come into their possession. They are authorized to apply all collected amounts towards the Debtor's liabilities. This provision allows All Team to manage and secure payments owed to the franchisee in order to cover any outstanding debts or obligations the franchisee may have to All Team.
Upon default, the Secured Party's powers as attorney-in-fact expand significantly. They can enter the Debtor's premises to take possession of, remove, and sell the collateral. Additionally, they can demand, collect, receive, and apply all payments or monies due or to become due to the Debtor for the sale or lease of collateral. This comprehensive authority ensures that All Team can seize and liquidate assets to recover any losses incurred due to the franchisee's default.
Furthermore, the Debtor appoints the Secured Party as their attorney-in-fact with the authority to sign any financing statement, including UCC-1s and UCC-3s, covering the collateral on behalf of the Debtor. This enables All Team to manage the legal and financial documentation related to the collateral efficiently. The power of attorney provisions in the security agreement are designed to protect All Team's interests by allowing them to act on behalf of the franchisee in specific financial and legal situations, particularly in cases of default or to manage the collateral effectively.