What happens to the 80% purchase price if the Centennial Agreement is reduced for All Team?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
The purchase price of each purchased Customer Invoice (the "Purchase Price") shall be Eighty percent (80%) of such Customer Invoice, less: (i) Funding Fee (as defined below); (ii) out-of-pocket expenses incurred by ATFC on behalf of USER; (iii) any adjustments for Late Accounts or Delinquent Accounts; (iv) any discounts made available or extended to the Customer; and (v) Continuing License Fee, Advertising Fund Fee, Technology Fees, Processing Fees and any other amounts due to ATFC as required under the Franchise Agreement and the Processing Agreement.
The Purchase Price is guided by the Centennial Agreement referred to herein.
Notwithstanding the foregoing, in the event that the Centennial Agreement is reduced, the 80% can be reduced accordingly.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the purchase price of each customer invoice is 80% of the invoice amount, less fees and adjustments. This purchase price is related to the Centennial Agreement. If the Centennial Agreement is reduced, the 80% purchase price can also be reduced accordingly.
In practice, this means that the amount All Team franchisees receive for their customer invoices could decrease if the funding agreement between All Team and Centennial Bank is altered. This creates a potential risk for franchisees, as their immediate revenue from invoice sales could be lower than initially expected.
Prospective franchisees should carefully consider the terms of the Centennial Agreement and how changes to it could impact their cash flow. It would be prudent to discuss this scenario with All Team and understand the specific conditions under which the 80% purchase price might be reduced. Understanding the historical stability of the Centennial Agreement and any potential triggers for its reduction is also crucial for financial planning.