Under the All Team agreement, does the definition of 'Instrument' include a security agreement?

According to All Team's 2025 Franchise Disclosure Document, the definition of "Instrument" specifically excludes security agreements. The document defines "Instrument" as any negotiable instrument, certificated security, or writing that evidences a right to payment of money. However, this definition explicitly states that it does not include a security agreement or lease. This means that while various financial documents fall under the definition of "Instrument," a security agreement is treated separately within the All Team franchise agreement.

This distinction is important for All Team franchisees because security agreements govern the security interests granted to All Team Franchise Corporation (ATFC) in the franchisee's collateral. The exclusion of security agreements from the definition of "Instrument" ensures that the rights and obligations related to the security interest are governed by the specific terms outlined in the security agreement itself, rather than being subject to the general provisions applicable to instruments. This provides clarity and avoids potential conflicts in interpreting the agreement.

For a prospective All Team franchisee, understanding this distinction is crucial when reviewing the franchise agreement and related documents. It highlights the importance of carefully examining the terms of the security agreement to fully understand the scope of the security interest granted to All Team, the remedies available to All Team in the event of default, and the franchisee's rights and obligations with respect to the collateral. This also emphasizes the need to seek legal counsel to ensure a comprehensive understanding of the legal and financial implications of the security agreement.