When does All Team pay the franchisee the reserve amount held out by their funding source?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
Pursuant to the Franchise Agreement, Funding Agreement and the Processing Agreement, we will bill your customers directly on behalf of your Agency and under "All Team Staffing" and your name, with instructions to remit payment directly to our designated financial institution. Your customers make their payments to us and we will apply the funds as follows:
- a. Apply full payment to each invoice paid by your customers;
- b. Pay you the reserve amount held out by our funding source (currently 20%) with your next payment for your weekly sales no later than Friday of each week.
Source: Item 10 — FINANCING (FDD pages 17–18)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, All Team offers funding of temporary payrolls to franchisees based on the availability from their lending institutions and the franchisee's creditworthiness. If approved, the franchisee will sign a Funding Agreement. All Team purchases the franchisee's customer invoices each week, which become All Team's Accounts Receivables, minus a Deferred Share. Currently, this Deferred Share is 20% of the Accounts Receivables.
The franchisee receives the 80% balance of their Accounts Receivables less certain fees and deductions. All Team will send the Purchase Price to the franchisee no later than Friday of each week based on the Accounts Receivables purchased for the prior week. The franchisee is responsible for depositing these amounts into their business account to cover payroll checks, related payroll taxes, and operating expenses.
All Team bills the franchisee's customers directly under "All Team Staffing" and the franchisee's name, with instructions to remit payment directly to All Team's designated financial institution. When customers pay, All Team applies the full payment to each invoice and pays the franchisee the reserve amount (currently 20%) with the next payment for their weekly sales no later than Friday of each week.