What is the Accounts Receivable Service Charge that All Team charges, and for how long is it applied?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
You will pay us a one-time Funding Fee of 1.5% of the Customer Invoice value at the time we purchase the Customer Invoice. If the Customer Invoice is not paid within 30 days from the Customer Invoice date, then we will charge you an Accounts Receivable Service Charge of 0.05% per day of the outstanding amount for any delinquent amount up until 90 days from the Customer Invoice date.
The balance of any Accounts Receivable remaining unpaid in whole or in part for more than 90 days from the Customer Invoice date and the balance of any Accounts Receivable owing by any Customer who is bankrupt or insolvent or who voluntarily seeks protection under the federal bankruptcy laws or against whom involuntary relief in bankruptcy is sought, or who has filed an assignment for the benefit of creditors prior to the expiration of such 90 day period, or as to whom we have a reasonable basis for believing that such Customer is about to become subject to one of the foregoing conditions or events shall be deemed a "Delinquent Account." The full amount of each Delinquent Account shall be deducted from the Purchase Price or, at our election, be paid by you to us upon demand. Any Delinquent Account that is subsequently collected by us shall be added to the next payment of your Purchase Price (less any other amounts due to us, including without limitation any interest, deductions or offsets permitted hereunder).
Source: Item 10 — FINANCING (FDD pages 17–18)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, if a customer invoice is not paid within 30 days of the invoice date, All Team will charge an Accounts Receivable Service Charge. This charge is 0.05% per day of the outstanding amount.
The service charge applies to any delinquent amount and continues up to 90 days from the Customer Invoice date. After 90 days, any remaining unpaid balance is considered a "Delinquent Account."
This means that if an All Team franchisee's customer fails to pay an invoice promptly, the franchisee will incur a daily service charge, reducing their potential profits. It is crucial for franchisees to manage customer payments effectively to avoid these charges. The franchisee should also be aware that after 90 days, the unpaid amount will be deducted from their Purchase Price or must be paid to All Team upon demand.