Does All Team have discretion in applying payments from the franchisee to past due indebtedness?

According to All Team's 2025 Franchise Disclosure Document, All Team retains sole discretion in applying payments from the franchisee to past due debts. Specifically, All Team can apply payments made by or on behalf of the franchisee to any outstanding indebtedness. This includes fees or amounts due under the Franchise Agreement, the Processing Agreement, and the Funding Agreement.

This provision means that if an All Team franchisee has multiple outstanding debts to the company, All Team can choose which debt to apply a payment to, regardless of the franchisee's preference. This could impact the franchisee if, for example, they want to ensure that a specific fee is paid to avoid penalties or interest charges on that particular debt.

For a prospective franchisee, this highlights the importance of maintaining good financial standing with All Team and understanding the terms of all agreements, including the Franchise Agreement, Processing Agreement, and Funding Agreement. Franchisees should proactively communicate with All Team regarding payment allocations to avoid potential misunderstandings or unintended consequences related to past due amounts.