What factors does All Team consider when deciding whether to offer payroll funding?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
INANCING**
Payroll Funding
Currently we, in our sole discretion, are offering funding of temporary payrolls to you based on availability from our lending institutions and your creditworthiness at the time you execute your Franchise Agreement. If approved by us and our lending institution, you will sign a Funding Agreement (the "Funding Agreement") which is attached in Exhibit C. The Funding Agreement has a 3 year term which is automatically renewable for additional 1 year terms.
The Funding Agreement provides that we will purchase your customer invoices which become our Accounts Receivables each week minus a Deferred Share. Currently this Deferred Share is 20% of the Accounts Receivables. We will advance to you the 80% balance of your Accounts Receivables less: (i) Funding Fee and Processing Fee; (ii) out-of-pocket expenses incurred by us on your behalf; (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 Fee, Technology Fee required under the Franchise Agreement, Funding Agreement and Processing Agreement and any other payments due ("Purchase Price"). The Purchase Price will be sent to you no later than Friday of each week based on the Accounts Receivables purchased for the prior week. You are responsible to deposit these amounts you receive from us into your business account to make sure adequate funds are in place to cover your payroll checks, related payroll taxes and operating expenses. In the event that our finance agreements with our banks are reduced, we have the right to reduce the 80% accordingly.
Pursuant to the Franchise Agreement, Funding Agreement and the Processing Agreement, we will bill your customers directly on behalf of your Agency and under "All Team Staffing" and your name, with instructions to remit payment directly to our designated financial institution. Your customers make their payments to us and we will apply the funds as follows:
- a. Apply full payment to each invoice paid by your customers;
- b. Pay you the reserve amount held out by our funding source (currently 20%) with your next payment for your weekly sales no later than Friday of each week.
Regarding garnishment or wage withholding, you are responsible for entering any garnishment into the software program before the payroll is processed. Also, you are responsible to make the payments to the proper authority as required in the withholding order.
You will pay us a one-time Funding Fee of 1.5% of the Customer Invoice value at the time we purchase the Customer Invoice. If the Customer Invoice is not paid within 30 days from the Customer Invoice date, then we will charge you an Accounts Receivable Service Charge of 0.05% per day of the outstanding amount for any delinquent amount up until 90 days from the Customer Invoice date.
Source: Item 10 — FINANCING (FDD pages 17–18)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the company may offer funding for temporary payrolls to franchisees. However, this is based on All Team's sole discretion, the availability of funds from their lending institutions, and the franchisee's creditworthiness at the time they sign the Franchise Agreement. If a franchisee is approved by All Team and their lending institution, they will need to sign a Funding Agreement.
Under the Funding Agreement, All Team will purchase the franchisee's customer invoices, which then become All Team's Accounts Receivables. All Team will advance 80% of the Accounts Receivables to the franchisee, after subtracting a Deferred Share (currently 20%), Funding and Processing Fees, out-of-pocket expenses, adjustments for late or delinquent accounts, discounts extended to customers, and any fees due under the Franchise Agreement, Funding Agreement, and Processing Agreement. The Purchase Price is sent to the franchisee no later than Friday of each week, based on the Accounts Receivables purchased for the prior week. The franchisee is then responsible for depositing these funds into their business account to cover payroll checks, related payroll taxes, and operating expenses.
It's important to note that if All Team's finance agreements with their banks are reduced, they reserve the right to reduce the 80% advance accordingly. This means the amount of funding a franchisee receives could fluctuate based on All Team's financial arrangements. Franchisees are also responsible for a one-time Funding Fee of 1.5% of the Customer Invoice value at the time All Team purchases the Customer Invoice. If a Customer Invoice is not paid within 30 days, All Team will charge an Accounts Receivable Service Charge of 0.05% per day of the outstanding amount, up to 90 days from the Customer Invoice date.
Any Accounts Receivable remaining unpaid for more than 90 days, or owed by a customer who is bankrupt or insolvent, will be deemed a "Delinquent Account." The full amount of each Delinquent Account will be deducted from the Purchase Price or paid by the franchisee to All Team upon demand. All Team retains a security interest in the franchisee's Accounts Receivable until all amounts due are paid. Franchisees are also required to indemnify All Team in the event of any suit resulting from the Funding Agreement, including responsibility for reasonable attorneys' fees.