How is the Purchase Price for All Team determined in relation to the Centennial Agreement?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
granted to ATFC hereby. USER shall execute and deliver to ATFC assignments of the Customer Invoices, which will include, without limitation, copies of all original invoices, copies of the bills of lading, proofs of delivery, contracts or purchase orders, and/or purchase order numbers which correspond with such Customer Invoices, and time tickets or other proofs of service as may be required by ATFC. USER shall send the foregoing documentation to ATFC no later than noon Wednesday following the previous week.
- D. Purchase Price. 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. ATFC shall send USER the Purchase Price no later than the Friday of each week following the Sunday close of the preceding week.
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 customer invoices is influenced by the Centennial Agreement. The standard purchase price for each customer invoice is 80% of the invoice value, but this is subject to several deductions. These deductions include a funding fee, any out-of-pocket expenses All Team Franchise Corporation (ATFC) incurs on behalf of the franchisee (USER), adjustments for late or delinquent accounts, discounts extended to the customer, and various fees like Continuing License, Advertising Fund, Technology, and Processing Fees. The Centennial Agreement, a funding agreement between Centennial Bank and ATFC, guides this purchase price.
Specifically, the FDD states that if the Centennial Agreement is reduced, the 80% purchase price can be reduced accordingly. This implies that the financial terms between Centennial Bank and All Team directly impact the franchisee's revenue from invoice sales. The franchisee needs to be aware that changes to the Centennial Agreement could lead to a lower percentage being paid for their customer invoices.
Furthermore, the Funding Agreement states that if there is any conflict between the Funding Agreement and the Centennial Agreement, the Centennial Agreement shall control to the extent of any inconsistency. This clause underscores the importance of the Centennial Agreement in the financial relationship between All Team, ATFC, and the franchisee. It also highlights a potential risk for franchisees, as the terms of the Centennial Agreement can override the terms of their Funding Agreement with ATFC.