Is All Team the only approved supplier of payroll and billing, processing, and funding services and sublicensed Software?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
n upon notice to you.
We are the only approved supplier of payroll and billing, processing, and funding services and sublicensed Software, and in the fiscal year ended December 31, 2024, we received $380,943 (or 45.3% of our total revenue of $841,287) from those services. Other than the revenue derived from providing payroll processing and funding and financing the Software, we do not derive revenue from your purchases or leases at the present time, but we reserve the right to do so in the future. We or our affiliates, if any, may elect to become a supplier of certain goods, products and services. If so, we and our affiliates would expect to derive income and profit from such sales. Currently there are no approved suppliers in which any of our officers own an interest at this time. Our owners reserve the right to have an interest in other approved suppliers in the future.
We reserve the right to negotiate with various vendors for quantity discount contracts which may include rebates under these contracts, but have not done so at this time. You may or may not find the contracts to your advantage and may elect to participate or not to participate in them. We have the right to affiliate ourselves with suppliers, and/or receive revenues from purchases made by franchisees, however during fiscal year 2024, we did not receive any rebates or other consideration based on our franchisees purchases. There are currently no purchasing or distribution cooperatives.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–16)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, All Team is currently the only approved supplier for payroll and billing processing services, payroll funding, and sublicensing the required software to franchisees. This means that franchisees are obligated to use All Team for these essential services. The FDD specifies that compliance with this requirement is a material condition of the franchise agreement.
However, the agreement also includes a contingency: if All Team or its affiliates cannot provide these services, All Team has the right to designate another approved supplier, provided they give written notice to the franchisee. This clause offers some flexibility if All Team is unable to fulfill its obligations.
In the fiscal year ending December 31, 2024, All Team generated $380,943 from these services, which represented 45.3% of their total revenue of $841,287. This indicates the significance of these services to All Team's revenue stream. While All Team doesn't currently derive revenue from franchisee purchases or leases beyond these services, they reserve the right to do so in the future.
For a prospective franchisee, this means they must factor in the costs and terms associated with using All Team's payroll, billing, processing, funding services, and software. It also highlights a potential risk: dependence on a single supplier for critical business functions. Franchisees should inquire about the terms of the Processing Agreement (mentioned in Note 2) and Funding Agreement (mentioned in Item 10) to fully understand the costs, conditions, and potential for fee changes.