What specific obligations of the All Team user continue even after termination of the Funding Agreement?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
to ATFC hereunder.
- 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. ATFC reserves the right to conduct a post termination audit to confirm the accuracy of receivables and compliance with client requirements. In addition, ATFC will withhold up to $10,000 in customer payments pending the result of the audit, or for up to 12 months after termination, as a reserve for unpaid receivables or customer chargebacks.
XI. Miscellaneous.
A.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, even after the Funding Agreement is terminated, the user (franchisee) has several continuing obligations. The franchisee must pay all outstanding Accounts Receivable in full upon demand via certified or cashier's check. Until full payment of all sums due to All Team is made, the franchisee must continue to fulfill all obligations outlined in the Funding Agreement concerning these Accounts Receivable.
Additionally, the franchisee is obligated to reimburse All Team for any payments All Team is required to make after the termination of the agreement. This reimbursement obligation survives the termination. The franchisee must also discontinue using the software on All Team's servers if the termination wasn't due to the franchisee's right to terminate.
These post-termination obligations ensure All Team can recover outstanding debts and manage financial responsibilities even after the Funding Agreement ends. The continuation of these obligations protects All Team's financial interests and ensures a smooth transition during and after the termination process. All Team also reserves the right to conduct a post termination audit to confirm the accuracy of receivables and compliance with client requirements. In addition, All Team will withhold up to $10,000 in customer payments pending the result of the audit, or for up to 12 months after termination, as a reserve for unpaid receivables or customer chargebacks.