For All Team franchisees, what happens to a Delinquent Account that is subsequently collected by ATFC?

According to All Team's 2025 Franchise Disclosure Document, if a Delinquent Account is later collected by ATFC (All Team Franchise Corporation), the collected amount, less any other amounts the franchisee owes to ATFC (including interest, deductions, or offsets), will be added to the next payment of the franchisee's Purchase Price. This means that while ATFC handles the collection of overdue accounts, the franchisee will eventually receive the funds, albeit with potential deductions for outstanding debts to ATFC.

This process ensures that All Team franchisees are credited for payments eventually received on delinquent accounts, even after ATFC has taken steps to collect those debts. However, franchisees should be aware that ATFC is not obligated to pursue collection efforts but may do so at its discretion, with any collection costs borne by the franchisee. This arrangement incentivizes franchisees to manage customer accounts and minimize delinquencies, as they are responsible for collection costs and may experience delays in receiving payments.

Furthermore, even if a Delinquent Account has been previously paid to or deducted by ATFC, ATFC will continue to collect any payments on these accounts as a collection agent for the franchisee, as long as the franchisee still owes amounts to ATFC under the Funding Agreement. This highlights the ongoing nature of ATFC's collection role and the franchisee's responsibility to settle their obligations to ATFC. The franchisee should maintain clear communication with ATFC regarding customer accounts and payment statuses to avoid misunderstandings and ensure accurate crediting of collected amounts.