Besides the Franchise Agreement, what other agreement might All Team and the USER enter into?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
| This FUNDING AGREEMENT is made this day of, 20, by and between ALL TEAM FRANCHISE CORPORATION, INC., a Florida corporation ("ATFC"), and a corporation, limited |
|---|
| liability company or partnership ("USER"). |
| W I T N E S S E T H: |
| WHEREAS, USER has entered into a temporary service business pursuant to a Franchise |
| Agreement with ATFC on 20 ("Franchise Agreement"); and |
| WHEREAS, ATFC and USER are entering into a Processing Agreement on even date herewith in |
| order to allow ATFC to provide certain billing and payroll processing to USER for their temporary |
| employees and possibly their administrative staff ("Processing Agreement"); |
| WHEREAS, ATFC is willing to provide financing for USER's temporary service businesses and |
| USER desires to utilize the funding for the operation of its temporary service businesses, according to the |
| terms, covenants and conditions contained herein; and |
| NOW THEREFORE, in consideration of the above premises and other good and valuable |
| consideration, the receipt and legal sufficiency of which are hereby acknowledged, ATFC and USER agree |
| as follows: |
| I. |
| Definitions. As used in this Funding Agreement the words and terms listed below shall have the |
| following meanings: |
| A. |
| Capitalized terms used herein and defined in the Franchise Agreement shall have the |
| meanings set forth in the Franchise Agreement when used herein unless otherwise defined herein or unless |
| the context otherwise requires. |
| B. |
| "Centennial Agreement" means the funding agreement between Centennial Bank, or any |
| successor or assign ("Centennial") and ATFC, which is incorporated herein by reference. |
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, in addition to the Franchise Agreement, All Team and the franchisee (referred to as "USER") may enter into a Funding Agreement and a Processing Agreement. The Funding Agreement outlines the terms, covenants, and conditions under which All Team will provide financing to the franchisee for their temporary service business. The Processing Agreement enables All Team to provide billing and payroll processing services to the franchisee for their temporary employees and potentially their administrative staff.
The Funding Agreement is further defined by referencing a "Centennial Agreement," which is a funding agreement between Centennial Bank (or any successor) and All Team, incorporated by reference into the Funding Agreement. This indicates that All Team's financing arrangements with franchisees may be linked to or dependent on their own financing agreements with a third-party bank.
These additional agreements suggest that becoming an All Team franchisee involves more than just the standard franchise relationship. It includes potential financial and operational dependencies on All Team for funding and back-office processing. Prospective franchisees should carefully review the terms of the Funding Agreement and Processing Agreement to understand the costs, obligations, and potential risks associated with these arrangements.