Are All Team franchisees required to use an approved supplier for payroll processing?

ranchise Agreement.

Note 2 – Processing Fee. You are required to use an approved supplier for payroll processing. Currently we are the only approved payroll and billing processing source for our franchisees. Attached as Exhibit B is a copy of the Processing Agreement you must sign in order to obtain payroll processing from us. We have the right to increase the fees based on changes in our costs to provide such services. The Processing Fee is subject to change upon written notification to you, however we will not change it more often than once a year. If you fail to timely provide all invoices and timecards to us, you must pay us a fine of $1,000 for the first violation, $2,500 for the second violation, and $5,000 for the third and each subsequent violation.

Note 3- Funding Fee. You are required to obtain payroll funding from us. Currently we are the only approved payroll funding source for our franchisees. Attached as Exhibit C is a copy of the Funding Agreement you must sign in order to obtain payroll funding from us. Under the Funding Agreement, we purchase your customer invoices ("Customer Invoice(s)") which then become our "Accounts Receivables". The Funding Fee is subject to change upon written notification to you, however we will not change it more often than once a year. Upon the termination of the Funding Agreement, we also have the right to withhold up to $10,000 in customer payments for a period of 12 months that we can use to offset any unpaid receivables or customer chargebacks.

Note 4 – Additional Training and Assistance; Refresher Training. We may provide additional or refresher training programs. You will pay all transportation, lodging, meals and other expenses incurred by you and your employees in attending such programs. We will provide an opening team of at least 1 employee to help you for at least 5 days on site after you open the Agency. These 5 days may be broken up in the first 2 weeks. We will also send 1 of our employees to provide further assistance for 3 additional days approximately 2 months after you are open for business. We will not charge you anything for this assistance. However, if you request additional assistance, and if we feel it is necessary, we will provide this assistance and you will pay us our customary fees for such services and reimburse us for expenses incurred in providing such additional assistance. Note 5 – Advertising and Promotional Materials. We may, from time to time, provide advertising plans, advice, and advertising and promotional materials such as brochures, merchandising, promotional and public relations materials. Such plans, advice and materials will be provided, when available, to you at your sole cost.

Note 6 – Customer Complaints. You have to reimburse us for expenses and costs we incur to remedy complaints of your customers.

Note 7 – Technology Fees. As described in Item 5, you must pay us $4,500 as the initial license fee for the Software.

Source: Item 6 — OTHER FEES\ (FDD pages 10–13)