Does All Team reserve the right to conduct a post-termination audit?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
TFC 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.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, All Team reserves the right to conduct a post-termination audit. This audit is to confirm the accuracy of receivables and compliance with client requirements.
In addition to the post-termination audit, All Team will withhold up to $10,000 in customer payments pending the result of the audit. This withholding can last for up to 12 months after termination. The purpose of this withholding is to act as a reserve for unpaid receivables or customer chargebacks.
This means that upon termination of the franchise agreement, All Team has the right to review the franchisee's financial records to ensure accuracy and compliance. The franchisee should be aware that a portion of their customer payments may be held for up to a year after termination to cover any potential financial discrepancies discovered during the audit.