Is All Team payroll funding mandatory for franchisees?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
bsequent violation.
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.
Note 4 – Additional Training and Assistance; Refresher Training. We may provide additional or refresher training programs. You will pay all transportation, lodging, meals and other expenses incurred by you and your employees in attending such programs. We will provide an opening team of at least 1 employee to help you for at least 5 days on site after you open the Agency. These 5 days may be broken up in the first 2 weeks. We will also send 1 of our employees to provide further assistance for 3 additional days approximately 2 months after you are open for business. We will not charge you anything for this assistance. However, if you request additional assistance, and if we feel it is necessary, we will provide this assistance and you will pay us our customary fees for such services and reimburse us for expenses incurred in providing such additional assistance.
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. The FDD states that All Team is currently the only approved payroll funding source for its franchisees. A Funding Agreement, included as Exhibit C, must be signed to obtain this funding.
Under this agreement, All Team purchases the franchisee's customer invoices, which then become All Team's accounts receivables. A Funding Fee is applied to these invoices. While the Funding Fee is subject to change with written notification, All Team will not change it more than once a year. The initial Funding Fee is 1.5% of the customer invoice amount. After 30 days, an Accounts Receivable Service Charge of 0.05% per day is assessed. After 90 days, the amount of the accounts receivable is charged back to the franchisee.
Upon termination of the Funding Agreement, All Team has the right to withhold up to $10,000 in customer payments for 12 months. This withheld amount can be used to offset any unpaid receivables or customer chargebacks. Additionally, franchisees are required to use All Team as the approved supplier for payroll processing, with a Processing Fee of 1.65% of Temporary Employment Gross Billings. Failure to provide invoices and timecards in a timely manner can result in fines ranging from $1,000 to $5,000 per violation.