What is the basis for calculating the weekly Processing Fee that an All Team franchisee must pay?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE shall pay ATFC a weekly Processing Fee based on the Temporary Employment Gross Billings, plus ATFC's actual costs, of the prior week by noon each Wednesday pursuant to the terms of the Processing Agreement.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the weekly Processing Fee is based on the franchisee's Temporary Employment Gross Billings from the prior week, plus All Team's actual costs. This fee is due each Wednesday by noon. The specific details of what the 'actual costs' encompass are not defined in this excerpt.
This means that a franchisee's Processing Fee will fluctuate week to week depending on their temporary employment revenue. It is important to note that the fee is based on the gross billings, not net profit, so even weeks with lower profitability could still result in a significant Processing Fee.
Prospective franchisees should carefully consider how this fee structure will impact their cash flow, especially during the initial ramp-up period when revenues may be lower. It would be prudent to ask All Team for a detailed breakdown of what 'actual costs' are included in the Processing Fee calculation to fully understand this expense.