Can the Funding Fee for an All Team franchise be increased?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
bsequent 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.
Source: Item 6 — OTHER FEES\ (FDD pages 10–13)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the Funding Fee can be increased. As detailed in Item 6, Note 3, the Funding Fee is subject to change, but All Team will provide written notification to the franchisee. Furthermore, All Team will not change the Funding Fee more than once a year.
The Funding Fee is 1.5% of the Customer Invoice amount, which is a one-time fee. If customer invoices are not paid after 30 days, an Accounts Receivable Service Charge of 0.05% per day will be assessed. After 90 days, the amount of the Accounts Receivable is charged back to the franchisee. This Funding Fee is deducted from the Temporary Gross Billings collected by All Team under the Funding Agreement.
This policy is fairly standard in franchising, where franchisors often retain the right to modify fees with reasonable notice. For a prospective All Team franchisee, it's important to factor in the potential for increases to the Funding Fee when projecting costs and revenue. It would be prudent to discuss with All Team the historical frequency and magnitude of Funding Fee adjustments to better understand the potential financial impact on the franchise.