What is the definition of 'Services' in the context of the Funding Agreement for All Team?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
tution of any new product thereof, together with all documentation, training manuals, and supplemental computer hardware. ATFC will train USER to facilitate the use of the computer program. Said computer program is designed for "front office" operations in the temporary staffing business, including payroll processing and client billing among other functions.
H. "Wages" means the salaries or wages earned by USER's temporary personnel employees for work performed for Customers.
II. Basic Agreement.
- A. Services. USER agrees to exclusively utilize ATFC for the financing of the payroll for temporary personnel employees placed by USER during the term of this Funding Agreement ("Services"). Provided USER is not in default hereunder or under the Franchise Agreement or Processing Agreement, ATFC agrees to render the Services for USER's Business in the manner specified in this Funding Agreement. USER hereby appoints ATFC as its true and lawful attorney-in-fact to perform all Services as specified in this Funding Agreement.
- B. Computer Hardware and Software. USER agrees to obtain and maintain the computer 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
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the term 'Services' within the context of the Funding Agreement refers to the exclusive utilization of All Team for financing the payroll of temporary personnel employees placed by the franchisee during the term of the Funding Agreement. This means that franchisees are obligated to use All Team's financial services specifically for managing and funding the payroll of their temporary staff. All Team, in turn, agrees to provide these services as long as the franchisee is not in default under the Funding Agreement, the Franchise Agreement, or the Processing Agreement.
This arrangement has significant implications for All Team franchisees. It mandates that they rely on All Team for payroll financing, which could streamline operations by integrating financial and staffing processes. However, it also means franchisees are locked into using All Team's services for this purpose, potentially limiting their options and flexibility in managing their finances. The franchisee also appoints All Team as their attorney-in-fact to perform all Services as specified in the Funding Agreement.
Furthermore, the agreement stipulates that franchisees must obtain and maintain the necessary computer hardware and software required by All Team to provide these services. This ensures that All Team can access data, statistical information, and reports stored or processed by the franchisee, which is essential for managing payroll and other related functions. All Team commits to keeping this data confidential, except when legally compelled to disclose it, in which case they will attempt to notify the franchisee in advance.
In addition to the exclusive use of All Team for payroll financing, the Funding Agreement includes the sale and purchase of customer invoices. The franchisee sells and assigns all customer invoices arising from their business to All Team, granting All Team all rights, securities, guarantees, and liens associated with those invoices. This arrangement allows All Team to manage the collection of payments directly from the franchisee's customers, further integrating the financial and operational aspects of the franchise.