Does termination of the All Team Funding Agreement release the user from continuing obligations regarding Accounts Receivable?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
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, termination of the Funding Agreement does not release the user from continuing obligations regarding Accounts Receivable. Specifically, the FDD states that no termination of the Funding Agreement, under any circumstances, releases the user from their ongoing obligations.
Upon termination or expiration of the Funding Agreement, the user must pay all outstanding Accounts Receivable in full upon demand via certified or bank cashier's check. After receiving payment, All Team will reassign any security interest in the user's collateral, subject to All Team's right to offset any damages or losses they are entitled to be indemnified or reimbursed for.
Even after termination, the user must continue to fulfill all obligations under the Funding Agreement related to these Accounts Receivable until full payment is made to All Team. This ensures that All Team retains its rights and protections regarding the collection and management of outstanding debts, even after the franchise relationship ends.