factual

What is the All Team user required to do with the software upon termination or expiration of the Funding Agreement?

All_Team Franchise · 2025 FDD

Answer from 2025 FDD Document

ign 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, upon termination or expiration of the Funding Agreement, the user is required to discontinue use of the software on All Team's servers. This requirement applies to terminations or expirations for any reason other than the user's termination right. The software, as defined in the FDD, includes the computer program All Team requires the user to operate, along with any updates, modifications, revisions, new versions, and substitutions, as well as all documentation, training manuals, and supplemental computer hardware. The software is designed for front office operations in the temporary staffing business, including payroll processing and client billing.

This means that if an All Team franchisee's Funding Agreement ends—either because the term is up or because All Team terminates the agreement due to the franchisee's default—the franchisee must stop using the software provided by All Team. However, if the franchisee terminates the Funding Agreement due to All Team's breach of the agreement, this requirement does not apply. This condition is important for a prospective franchisee to consider, as it affects their operational capabilities following the end of the Funding Agreement.

This stipulation ensures that All Team maintains control over its proprietary software and data. It prevents franchisees who are no longer in good standing or who have had their agreements terminated from continuing to use All Team's resources. For a franchisee, this means they need to have a plan for transitioning to a different software system if their Funding Agreement ends, to ensure business continuity. The FDD also states that All Team 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.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.