What is the definition of 'Purchase Price' in the context of the Funding Agreement for All Team?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
ATFC shall send USER the Purchase Price no later than the Friday of each week following the Sunday close of the preceding week.
USER must deposit these funds in its account in order to have adequate funds to cover the checks ATFC will prepare in accordance with the Processing Agreement.
The difference between the Account Receivable and the Purchase Price percentage is called the "Deferred Share".
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the Purchase Price is defined within the context of the Funding Agreement, specifically concerning the purchase of Customer Invoices. The Purchase Price represents the amount All Team pays to the franchisee (referred to as USER) for each Customer Invoice that All Team purchases.
The standard Purchase Price is 80% of the Customer Invoice value. However, this amount is subject to several deductions. These deductions include: the Funding Fee, out-of-pocket expenses incurred by All Team on behalf of the franchisee, adjustments for late or delinquent accounts, any discounts extended to the Customer, and fees such as the Continuing License Fee, Advertising Fund Fee, Technology Fees, and Processing Fees, as stipulated in both the Franchise Agreement and the Processing Agreement.
The Purchase Price is influenced by the Centennial Agreement, which is a funding agreement between Centennial Bank and All Team. If the terms of the Centennial Agreement are reduced, All Team reserves the right to reduce the 80% Purchase Price accordingly. All Team sends the Purchase Price to the franchisee each week, specifically by Friday following the Sunday close of the preceding week. The franchisee is then required to deposit these funds into their account to cover checks prepared by All Team under the Processing Agreement. The difference between the total Account Receivable and the Purchase Price percentage is referred to as the "Deferred Share."