What fees can ATFC deduct from the weekly Purchase Price for All Team franchisees?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
USER agrees that ATFC will deduct the Continuing License Fees, Advertising Fees, Technology Fees, Processing Fees and any other amounts due under the Franchise Agreement, the Processing Agreement and this Agreement from the weekly Purchase Price.
In addition, USER agrees that ATFC is permitted to deduct any other amounts due to ATFC or its affiliates.
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 Funding Fee is 1.5% of the total value of the Customer Invoices purchased by ATFC during the prior week.
If any Account Receivable or any other financial obligation of USER to ATFC becomes past due for more than 90 days, ATFC may set off the amount of the past due amount from any amounts owed to USER hereunder.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, All Team Franchise Corporation (ATFC) can deduct several fees and amounts from the weekly Purchase Price it pays to its franchisees (referred to as USER). These deductions include Continuing License Fees, Advertising Fees, Technology Fees, and Processing Fees. Additionally, ATFC can deduct any other amounts that the franchisee owes to ATFC or its affiliates under the Franchise Agreement and the Processing Agreement.
Furthermore, the Purchase Price itself, which is the price ATFC pays for each purchased Customer Invoice, is calculated as Eighty percent (80%) of the Customer Invoice value, less several items. These deductions include the Funding Fee, out-of-pocket expenses incurred by ATFC on behalf of the franchisee, adjustments for Late Accounts or Delinquent Accounts, and any discounts made available or extended to the Customer. The Funding Fee is 1.5% of the total value of the Customer Invoices purchased by ATFC during the prior week.
These deductions from the Purchase Price directly impact the amount of revenue a franchisee receives each week. It is important for prospective franchisees to fully understand all the fees and potential deductions to accurately project their earnings and manage their cash flow. The FDD also mentions that the Funding Fee is subject to change with written notification, but not more than once a year, which introduces a degree of variability in the franchisee's costs.
Moreover, if any Account Receivable or any other financial obligation of USER to ATFC becomes past due for more than 90 days, ATFC may set off the amount of the past due amount from any amounts owed to USER hereunder. This means that All Team has the right to offset any overdue amounts from payments to the franchisee, which could further affect the franchisee's income.