Executive Vice President Adam Brandon told CNN the group wishes Armey well.
Armey sent a tersely worded email to the organization demanding he be paid until his contract expires at the end of the year, Roll Call reported Tuesday.
In addition, he demanded the organization drop his name from all publications and fundraising material and return his official Congressional portrait hanging in its Washington headquarters.
"The top management team of FreedomWorks was taking a direction I thought was unproductive, and I thought it was time to move on with my life," Armey told Mother Jones.
One former Armey staffer speculated the breakup was not as hostile as it sounded.
"I'm going to guess that at the end of the day, we're going to find that he's just a cranky 72-year-old man," the aide told Roll Call.