What is the interest rate charged on late payments for an All Team franchise?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
If any or all of the amounts due under this Agreement are not paid when due, ATFC shall have the right to charge interest on late payments equal to the lesser of one and one-half percent (1½%) per month or the maximum legal rate in the jurisdiction where the Agency is located.
FRANCHISEE acknowledges that the foregoing does not constitute ATFC agreement to accept payments after same are due or a commitment by ATFC to extend credit to, or otherwise finance FRANCHISEE's operation of the Agency.
ATFC's right to interest is in addition to any other remedies that ATFC may have.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, if a franchisee fails to make payments on time, All Team has the right to charge interest on the overdue amount. The interest rate will be the lesser of 1.5% per month or the maximum legal rate applicable in the jurisdiction where the All Team agency is located.
This interest charge applies to any amounts due under the Franchise Agreement. This includes, but is not limited to, Continuing License Fees, Advertising Fees, Technology Fees, fees due under the Funding Agreement, and fees due under the Processing Agreement.
It is important to note that All Team's ability to charge interest on late payments does not obligate them to accept late payments or to provide any form of credit or financing to the franchisee. All Team retains the right to pursue other remedies for non-payment in addition to charging interest.