Is All Team Finance Company (ATFC) responsible for the creditworthiness of All Team's customers?

According to All Team's 2025 Franchise Disclosure Document, All Team Finance Company (ATFC) is not responsible for the creditworthiness of the customers of the All Team franchisee (referred to as USER in the document). While ATFC provides a credit investigation service through a third party, the final decision to extend credit rests with the franchisee. Therefore, ATFC is not responsible for non-payment by the customer or the accuracy of information provided by third parties. Any charges for credit reports may be passed on to the franchisee.

This means that as an All Team franchisee, you bear the ultimate responsibility for assessing the credit risk of your customers. Even though ATFC offers a credit investigation service, you cannot rely solely on their assessment. You need to conduct your own due diligence and make informed decisions about extending credit. If a customer fails to pay, or if the information provided by the third party is inaccurate, you, as the franchisee, will be the one to bear the financial consequences.

This arrangement is not uncommon in the franchise industry, where franchisees often have direct relationships with customers and are better positioned to evaluate local market conditions and customer-specific factors. However, it's crucial to understand that this places a significant responsibility on the franchisee to manage credit risk effectively. The franchisee should develop sound credit policies and procedures to minimize potential losses from customer defaults.