Does All Team automatically offer payroll funding to all franchisees?
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. 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.
Regarding garnishment or wage withholding, you are responsible for entering any garnishment into the software program before the payroll is processed. Also, you are responsible to make the payments to the proper authority as required in the withholding order.
Source: Item 10 — FINANCING (FDD pages 17–18)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, payroll funding is not automatically offered to all franchisees. Instead, All Team offers funding for temporary payrolls at its sole discretion. This funding is contingent upon the availability of funds from their lending institutions and the franchisee's creditworthiness at the time they execute the Franchise Agreement. If a franchisee is approved by All Team and their lending institution, they must sign a Funding Agreement, which has a 3-year term that automatically renews for additional 1-year terms.
Under the Funding Agreement, All Team purchases the franchisee's customer invoices, which become All Team's Accounts Receivables, each week, minus a Deferred Share. Currently, the Deferred Share is 20% of the Accounts Receivables. The franchisee will receive 80% of the Accounts Receivables balance, less certain fees and expenses. These deductions include a Funding Fee and Processing Fee, out-of-pocket expenses incurred by All Team, adjustments for Late or Delinquent Accounts, discounts extended to customers, and fees like the Continuing License Fee, Advertising Fee, and Technology Fee required under the Franchise Agreement, Funding Agreement, and Processing Agreement. 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. Franchisees are responsible for depositing these funds into their business account to cover payroll checks, related payroll taxes, and operating expenses.
All Team directly bills the franchisee's customers under "All Team Staffing" and the franchisee's name, with instructions for customers to remit payment directly to All Team's designated financial institution. When customers pay, All Team applies the full payment to each invoice and pays the franchisee the reserve amount held out by their funding source (currently 20%) with the next payment for their weekly sales, no later than Friday of each week. All Team also states that they do not offer direct or indirect financing other than what is described, and they do not guarantee any note, lease, or other obligations.