What is the 'Deferred Share' in the context of All Team's customer invoice purchasing?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
The difference between the Account Receivable and the Purchase Price percentage is called the "Deferred Share".
For example, if the percentage of the Purchase Price percentage is 80% of the Customer Invoice, then the Deferred Share is 20%.
As ATFC receives payment in full from the Customer on each Account Receivable, the Deferred Share will be remitted to USER no later than Friday of the following week after ATFC receives said payment.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the 'Deferred Share' represents the difference between the total amount of a customer invoice and the percentage of that invoice that All Team initially pays to the franchisee (referred to as USER) when purchasing the invoice. For example, if All Team purchases a customer invoice for 80% of its value, the deferred share is the remaining 20%.
All Team remits this deferred share to the franchisee after receiving full payment from the customer on the account receivable. This payment typically occurs no later than the Friday of the week following All Team's receipt of the customer's payment. This arrangement allows All Team to finance the franchisee's payroll by purchasing invoices at a discount and then passing on the remaining balance once the customer pays.
This system ensures that All Team franchisees receive immediate funds for a portion of their invoices, aiding in cash flow management. However, franchisees should be aware that the initial payment is less than the full invoice amount, and the remaining balance is contingent on the customer's payment to All Team. Franchisees also need to understand the conditions under which All Team can deduct fees or set off amounts from the deferred share, such as in the case of delinquent accounts or other financial obligations.