On what are All Team's funding and processing fees based?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
13,036 | $ 3,492,701 |
ALL TEAM FRANCHISE CORPORATION STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023
| 2024 | 2023 | |
|---|---|---|
| OPERATING REVENUES | ||
| Royalty and license fees - franchise | $ 31 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 33)
What This Means (2025 FDD)
Based on the 2025 All Team Franchise Disclosure Document, the financial statements provide revenue figures for 'Funding and processing fees - franchise.' These fees, along with royalty and license fees, constitute the total operating revenues for the company. However, the FDD does not specify the basis on which these funding and processing fees are calculated or charged to franchisees.
While the financial statements show the amounts All Team collected in funding and processing fees for 2023 and 2024, they do not detail what activities or services these fees cover. A prospective franchisee would need to understand what triggers these fees and how they are determined to accurately forecast their potential costs and revenues.
Therefore, it is essential for a potential All Team franchisee to directly ask the franchisor for a comprehensive breakdown of what the funding and processing fees encompass. This includes understanding if the fees are based on a percentage of sales, a flat fee per transaction, or some other calculation method. Clarification on whether these fees cover specific services, such as technology support, marketing materials, or training, is also crucial for making an informed investment decision.