What is the Funding Fee for All Team franchisees associated with the Funding Agreement?
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, who is currently the only approved source. The Funding Agreement, a copy of which is attached as Exhibit C, details the arrangement where All Team purchases the franchisee's customer invoices, which then become All Team's accounts receivables.
The Funding Fee is 1.5% of the customer invoice amount as a one-time fee. If invoices are not paid promptly, an Accounts Receivable Service Charge of 0.05% per day will be assessed after 30 days. Furthermore, if an invoice remains unpaid after 90 days, the amount of the accounts receivable is charged back to the franchisee. These fees are deducted from the temporary gross billings collected by All Team under the Funding Agreement.
All Team retains the right to modify the Funding Fee, but will provide written notification to the franchisee and will not make changes more than once per year. Upon termination of the Funding Agreement, All Team can withhold up to $10,000 in customer payments for 12 months to offset any unpaid receivables or customer chargebacks. This could impact the franchisee's cash flow at the end of the agreement.