How does All Team apply funds received from customers?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
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. Pay you the reserve amount held out by our funding source (currently 20%) with your next payment for your weekly sales no later than Friday of each week.
Source: Item 10 — FINANCING (FDD pages 17–18)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, when All Team receives payments from a franchisee's customers, the funds are applied in a specific order. First, the full payment is applied to each invoice the customer has paid. Then, All Team pays the franchisee the reserve amount that was held out by their funding source. Currently, this reserve is 20% of the accounts receivable. This reserve payment is included with the franchisee's next payment for their weekly sales and is paid no later than Friday of each week.
This process is part of All Team's payroll funding program, where they purchase a franchisee's customer invoices, which then become All Team's accounts receivables. All Team advances the franchisee 80% of the accounts receivables, less various fees and adjustments. The franchisee is then responsible for depositing these funds into their business account to cover payroll, taxes, and operating expenses.
It is important for prospective franchisees to understand this funding process, as it directly impacts their cash flow and financial obligations. Franchisees should ensure they fully understand the terms of the Funding Agreement, including the fees, adjustments, and the handling of delinquent accounts, as these can affect the amount they receive from All Team. Franchisees are also responsible for entering any garnishments into the software program before payroll is processed and for making payments to the proper authority as required in the withholding order.