What is the purpose of the All Team Funding Agreement mentioned in the Processing Agreement?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, USER has entered into a temporary service business pursuant to a Franchise Agreement with ATFC on 20 ("Franchise Agreement"); and WHEREAS, ATFC and USER are entering into a Processing Agreement on even date herewith in order to allow ATFC to provide certain billing and payroll processing to USER for their temporary employees and possibly their administrative staff ("Processing Agreement"); WHEREAS, ATFC is willing to provide financing for USER's temporary service businesses and USER desires to utilize the funding for the operation of its temporary service businesses, according to the terms, covenants and conditions contained herein; and
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the Funding Agreement between All Team Franchise Corporation and the franchisee (USER) serves to provide financing for the franchisee's temporary service business operations. The agreement allows All Team to offer billing and payroll processing services to the franchisee for their temporary employees and potentially their administrative staff, as outlined in the Processing Agreement. The franchisee desires to utilize this funding to operate their temporary service business according to the terms and conditions specified in the Funding Agreement.
Under the Funding Agreement, the franchisee agrees to exclusively use All Team for financing the payroll of temporary personnel employees during the agreement's term. All Team, in turn, agrees to provide these services as long as the franchisee is not in default under the Funding Agreement, Franchise Agreement, or Processing Agreement. The franchisee appoints All Team as their attorney-in-fact to perform the services detailed in the Funding Agreement.
Furthermore, the Funding Agreement involves the sale and assignment of the franchisee's customer invoices to All Team. This grants All Team all rights, securities, guarantees, and liens associated with these invoices, as well as the franchisee's defenses and rights of offset concerning any payments received. The franchisee is also required to use the computer hardware and software that All Team deems necessary to provide the services. This software is designed for front office operations, including payroll processing and client billing.