Does the reimbursement obligation of an All Team franchisee to ATFC survive the termination of the Funding Agreement?

According to All Team's 2025 Franchise Disclosure Document, the reimbursement obligation of a franchisee (USER) to ATFC does indeed survive the termination of the Funding Agreement. Specifically, if ATFC is required to make any payments after the termination of the agreement, the franchisee is obligated to reimburse ATFC for the full amount of such payments upon demand. This clause ensures that even after the Funding Agreement ends, the franchisee remains responsible for financial obligations that arise due to events occurring during the agreement's term.

This survival clause has significant implications for prospective All Team franchisees. It means that even after the franchise relationship ends, the franchisee could still be liable for unforeseen financial obligations. For example, if a customer dispute arises after the termination and ATFC is required to make a payment, the franchisee would have to reimburse ATFC. This post-termination liability could impact the franchisee's financial planning and potentially create unexpected expenses.

Furthermore, the Funding Agreement includes a personal and unconditional guarantee, meaning an individual guarantor is responsible for the franchisee's obligations and indebtedness arising under the agreement, without limitation to time or amount. This guarantee remains in effect even with renewals, extensions, modifications, or amendments to the agreement. This guarantee underscores the importance of understanding all potential financial obligations and liabilities associated with the All Team franchise, even after the Funding Agreement concludes.

In addition to the reimbursement obligation, the franchisee is also required to pay in full all outstanding Accounts Receivable upon termination or expiration of the Funding Agreement. Until full payment is made, the franchisee must continue to fulfill its obligations under the agreement regarding these Accounts Receivable. This ensures that All Team maintains its financial interests even after the formal agreement has ended.