What agreement outlines the terms of All Team's payroll funding?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
INANCING**
Payroll Funding
Currently we, in our sole discretion, are offering funding of temporary payrolls to you based on availability from our lending institutions and your creditworthiness at the time you execute your Franchise Agreement. If approved by us and our lending institution, you will sign a Funding Agreement (the "Funding Agreement") which is attached in Exhibit C. The Funding Agreement has a 3 year term which is automatically renewable for additional 1 year terms.
The Funding Agreement provides that we will purchase your customer invoices which become our Accounts Receivables each week minus a Deferred Share. Currently this Deferred Share is 20% of the Accounts Receivables. We will advance to you the 80% balance of your Accounts Receivables less: (i) Funding Fee and Processing Fee; (ii) out-of-pocket expenses incurred by us on your behalf; (iii) any adjustments for Late Accounts or Delinquent Accounts; (iv) any discounts made available or extended to the Customer; and (v) Continuing License Fee, Advertising Fee, Technology Fee required under the Franchise Agreement, Funding Agreement and Processing Agreement and any other payments due ("Purchase Price"). The Purchase Price will be sent to you no later than Friday of each week based on the Accounts Receivables purchased for the prior week. You are responsible to deposit these amounts you receive from us into your business account to make sure adequate funds are in place to cover your payroll checks, related payroll taxes and operating expenses. In the event that our finance agreements with our banks are reduced, we have the right to reduce the 80% accordingly.
Pursuant to the Franchise Agreement, Funding Agreement and the Processing Agreement, we will bill your customers directly on behalf of your Agency and under "All Team Staffing" and your name, with instructions to remit payment directly to our designated financial institution. Your customers make their payments to us and we will apply the funds as follows:
- a. Apply full payment to each invoice paid by your customers;
- b.
Source: Item 10 — FINANCING (FDD pages 17–18)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the terms of payroll funding are outlined in a Funding Agreement. All Team may offer funding for temporary payrolls at its discretion, based on the availability from its lending institutions and the franchisee's creditworthiness at the time of signing the Franchise Agreement. If approved, the franchisee will sign the Funding Agreement, which is included as Exhibit C.
The Funding Agreement has an initial term of 3 years and automatically renews for additional 1-year terms. Under this agreement, All Team purchases the franchisee's customer invoices, which become All Team's Accounts Receivables, less a Deferred Share. Currently, the Deferred Share is 20% of the Accounts Receivables. All Team will advance the franchisee the remaining 80% of the Accounts Receivables, minus certain fees and expenses. These deductions include: (i) Funding Fee and Processing Fee; (ii) out-of-pocket expenses incurred by All Team; (iii) adjustments for Late or Delinquent Accounts; (iv) discounts extended to the Customer; and (v) Continuing License Fee, Advertising Fee, Technology Fee, and any other payments due under the Franchise Agreement, Funding Agreement, and Processing Agreement. This net amount is referred to as the "Purchase Price."
The Purchase Price is sent to the franchisee no later than Friday of each week, based on the Accounts Receivables purchased for the prior week. The franchisee is responsible for depositing these funds into their business account to cover payroll checks, related payroll taxes, and operating expenses. All Team retains the right to reduce the 80% advance if its finance agreements with its banks are reduced. Franchisees are also required to sign a Security Agreement, found in Exhibit A of the Funding Agreement, granting All Team a security interest in the Accounts Receivable until all amounts due are paid. Franchisees must also indemnify All Team in the event of any suit resulting from the Funding Agreement, including responsibility for reasonable attorneys' fees.