How is the Funding Fee for an All Team franchise collected?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Funding Fee (Note 3) | 1.5% of Customer Invoice amount (one-time fee); After 30 days, Accounts Receivable Service Charge of 0.05% per day will be assessed thereafter; and Upon 90 days the amount of the Accounts Receivable is charged back to you | By noon Wednesday based on the prior week's Temporary Employment Gross Billings | This Funding Fee is deducted from the Temporary Gross Billings collected by us under the Funding Agreement. The Funding Fee can be increased upon written notice. |
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.
Source: Item 6 — OTHER FEES\ (FDD pages 10–13)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, franchisees are required to obtain payroll funding from All Team, as they are currently the only approved source. The Funding Fee is 1.5% of the Customer Invoice amount, which is a one-time fee. This fee is deducted from the Temporary Gross Billings collected by All Team under the Funding Agreement. The Funding Fee can be increased upon written notice.
After 30 days, an Accounts Receivable Service Charge of 0.05% per day will be assessed. If the amount is unpaid after 90 days, the amount of the Accounts Receivable is charged back to the franchisee.
Upon termination of the Funding Agreement, All Team has the right to withhold up to $10,000 in customer payments for a period of 12 months. This withheld amount can be used to offset any unpaid receivables or customer chargebacks. The Funding Fee is subject to change upon written notification to the franchisee, but All Team will not change it more often than once a year.