What is the definition of 'Customer Invoices' in the context of the Funding Agreement for All Team?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
er hardware and software ATFC will require, from time to time, that is necessary in order for ATFC to provide Services. USER agrees that it will permit ATFC to access data and statistical information and reports stored in or processed by USER. ATFC will keep all such data and statistical information and reports confidential unless there is a compelling and legitimate reason such as a subpoena or government requirement to do so. In such event, ATFC will attempt to notify USER in advance of any disclosure.
- C. Sale and Purchase of Customer Invoices. Subject to the provisions of Section VII.A. below, USER hereby sells and assigns to ATFC and ATFC hereby purchases from USER, all of USER's customer invoices arising from USER's Business ("Customer Invoices"). USER's sale and assignment of Customer Invoices to ATFC grants ATFC all of USER's rights, securities, guaranties and liens with respect to each Customer Invoice and all of USER's defenses and rights of offset with respect to any payments received by ATFC. These Customer Invoices, as a result of the sale to ATFC, become the accounts receivable of ATFC ("Accounts Receivable") and therefore ATFC shall not be obligated to, and shall not be liable for, exercising or refusing to exercise any rights granted to ATFC hereby. USER shall execute and deliver to ATFC assignments of the Customer Invoices, which will include, without limitation, copies of all original invoices, copies of the bills of lading, proofs of delivery, contracts or purchase orders, and/or purchase order numbers which correspond with such Customer Invoices, and time tickets or other proofs of service as may be required by ATFC. USER shall send the foregoing documentation to ATFC no later than noon Wednesday following the previous week.
- D. Purchase Price. The purchase price of each purchased Customer Invoice (the "Purchase Price") shall be Eighty percent (80%) of such Customer Invoice, less: (i) Funding Fee (as defined below); (ii) out-of-pocket expenses incurred by ATFC on behalf of USER; (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 Fund Fee, Technology Fees, Processing Fees and any other amounts due to ATFC as required under the Franchise Agreement and the Processing Agreement. The Purchase Price is guided by the Centennial Agreement referred to herein. Notwithstanding the foregoing, in the event that the Centennial Agreement is reduced, the 80% can be reduced accordingly.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, specifically within the Funding Agreement, 'Customer Invoices' are defined as all of the All Team franchisee's customer invoices arising from the franchisee's business. The franchisee sells and assigns these invoices to All Team Franchise Corporation (ATFC). This grants ATFC all rights, securities, guaranties, and liens related to each invoice, including rights of offset.
As a result of this sale, the customer invoices become the accounts receivable of ATFC. The franchisee must provide ATFC with assignments of these invoices, including copies of original invoices, bills of lading, proofs of delivery, contracts or purchase orders, purchase order numbers, and time tickets or other proofs of service as required by ATFC. This documentation must be sent to ATFC no later than noon on Wednesday following the previous week.
The purchase price for each customer invoice is 80% of the invoice value, less deductions for the Funding Fee, out-of-pocket expenses incurred by ATFC, adjustments for late or delinquent accounts, discounts extended to the customer, and other fees due to ATFC under the Franchise Agreement and Processing Agreement. ATFC sends the franchisee the purchase price no later than the Friday of each week following the Sunday close of the preceding week. The difference between the account receivable and the purchase price percentage is called the 'Deferred Share'.