What is the Accounts Receivable Service Charge assessed after 30 days for an All Team franchise?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Funding Fee (Note 3) | 1.5% of Customer Invoice amount (one-time fee); After 30 days, Accounts Receivable Service Charge of 0.05% per day will be assessed thereafter; and Upon 90 days the amount of the Accounts Receivable is charged back to you | By noon Wednesday based on the prior week's Temporary Employment Gross Billings | This Funding Fee is deducted from the Temporary Gross Billings collected by us under the Funding Agreement. The Funding Fee can be increased upon written notice. |
Source: Item 6 — OTHER FEES\ (FDD pages 10–13)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, franchisees are required to obtain payroll funding from All Team. As part of the Funding Agreement, All Team purchases the franchisee's customer invoices, which then become All Team's Accounts Receivables. A Funding Fee is applied to these invoices.
Specifically, after 30 days, All Team assesses an Accounts Receivable Service Charge of 0.05% per day on the customer invoice amount. This charge continues to accrue daily. After 90 days, the full amount of the Accounts Receivable is charged back to the franchisee.
This means that if an All Team franchisee has a customer invoice that remains unpaid for more than 30 days, they will incur a daily service charge of 0.05% of the invoice amount. This can quickly add up and impact the franchisee's profitability. It is crucial for franchisees to manage their customer invoices and collections effectively to avoid these charges and the potential chargeback after 90 days. The Funding Fee can be increased upon written notice.