When does the Accounts Receivable Service Charge begin to accrue for All Team franchisees?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
USER will be charged at the rate of 0.05% per day on the unpaid amounts for each delinquent Customer Invoice, beginning 30 days after the date of the Customer Invoice ("Accounts Receivable Service Charge").
Customer Invoices that are unpaid after 90 days of the date of the Customer Invoice will be charged back to the USER as set forth in Section VII.B below.
This Accounts Receivable Service Charge will be assessed after the Customer Invoice amount has been delinquent for a period of 30 days.
- **V.
Deductions from Purchase Price**.
USER agrees that ATFC will deduct the Continuing License Fees, Advertising Fees, Technology Fees, Processing Fees and any other amounts due under the Franchise Agreement, the Processing Agreement and this Agreement from the weekly Purchase Price.
In addition, USER agrees that ATFC is permitted to deduct any other amounts due to ATFC or its affiliates.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, an Accounts Receivable Service Charge is applied to unpaid customer invoices. This charge begins accruing at a rate of 0.05% per day on the unpaid amount of each delinquent customer invoice. The accrual starts 30 days after the original date of the customer invoice.
In practical terms, this means that if an All Team franchisee has a customer who doesn't pay their invoice within 30 days, a daily service charge will be added to the outstanding balance. This charge continues to accumulate until the invoice is paid. After 90 days from the invoice date, the unpaid amount will be charged back to the franchisee.
This policy incentivizes franchisees to ensure timely payments from their customers. The daily accrual of the service charge can quickly add up, impacting the franchisee's revenue. It's important for prospective All Team franchisees to have effective systems in place for managing and collecting accounts receivable to avoid these charges. The franchisee also agrees that All Team Franchise Corporation will deduct Continuing License Fees, Advertising Fees, Technology Fees, Processing Fees and any other amounts due under the Franchise Agreement, the Processing Agreement and the Funding Agreement from the weekly Purchase Price.