How does All Team apply payments made by or on behalf of an All Team franchisee?

According to All Team's 2025 Franchise Disclosure Document, All Team has the sole discretion in applying payments made by a franchisee or on behalf of a franchisee. These payments can be applied to any past due indebtedness the franchisee has for any fees or amounts due under the Franchise Agreement, the Processing Agreement, and the Funding Agreement. This means that if an All Team franchisee has outstanding debts in any of these areas, All Team can allocate any payment received to cover those debts first.

This policy is significant for prospective franchisees as it clarifies that All Team prioritizes the collection of outstanding debts. Franchisees cannot assume that their payments will automatically be applied to current fees. If a franchisee has any past due amounts, All Team can use current payments to cover those older debts first, potentially leading to new late fees or penalties on current obligations if the payment is insufficient to cover both.

Furthermore, the FDD states that franchisees must make prompt payments without any deduction or offset of charges that are properly due, including fees. Franchisees are not allowed to withhold payments to All Team based on any perceived non-performance by All Team of its obligations. This reinforces All Team's control over payment application and emphasizes the franchisee's responsibility to maintain timely and full payments, irrespective of any disputes or issues with All Team's performance. This is a fairly standard practice in franchising, as it protects the franchisor's revenue stream and ensures consistent payment collection.