What is the process for All Team Funding Company (ATFC) to reassign the security interest to the user?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. Post-Termination Obligations. USER shall, upon termination or expiration of this Funding Agreement for any reason, pay in full upon demand, by certified or bank cashier's check, all Accounts Receivable remaining unpaid as of the date of such termination.
Upon receipt of such payment and subject to ATFC's right to offset any damages or losses for which USER is liable to indemnify or reimburse ATFC hereunder, ATFC shall reassign to USER any security interest or other interest which ATFC may have in USER's collateral.
Notwithstanding any termination of this Funding Agreement, until such time as full payment is made by USER to ATFC of all sums due to ATFC under this Funding Agreement, USER shall continue to perform all of its obligations pursuant to the terms of this Funding Agreement with regard to such Accounts Receivable.
No termination of this Funding Agreement, under any circumstances, shall release or discharge USER from its continuing obligations hereunder.
Upon the termination or expiration of this Funding Agreement for any reason other than as a result of USER's termination right, ATFC will require USER to discontinue use of the Software on ATFC's servers.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the All Team Funding Company (ATFC) will reassign any security interest or other interest it has in the user's collateral back to the user under specific conditions. This reassignment occurs after the termination or expiration of the Funding Agreement.
Specifically, the user must first pay in full all outstanding Accounts Receivable as of the termination date. This payment must be made via certified or bank cashier's check upon demand. Once ATFC receives this full payment, it will then reassign the security interest to the user. However, this is subject to ATFC's right to offset any damages or losses for which the user is liable to indemnify or reimburse ATFC.
Even after termination of the Funding Agreement, the user is still obligated to fulfill all terms of the agreement regarding the Accounts Receivable until full payment is made to ATFC. Termination of the agreement does not release the user from these ongoing obligations. Additionally, upon termination or expiration of the Funding Agreement for reasons other than the user's termination right, All Team will require the user to discontinue use of the Software on ATFC's servers.