According to All Team's 2025 Franchise Disclosure Document, the company uses the accrual basis of accounting, recognizing revenue when it is both earned and invoiced, while expenses are recognized when incurred. Initial franchise fee income is recognized upon the execution of the franchise agreement and is nonrefundable. All Team also receives royalties, which are based on a percentage of the annual sales volume from its affiliates and franchisees. Additionally, funding and processing fees are based on a percentage of gross billings.

In 2019, All Team adopted ASC 606, Revenue from Contracts with Customers, which amended the existing accounting standards for revenue recognition. As a result, All Team recognizes revenue when the services are provided, there is persuasive evidence of an arrangement, the price is fixed, and collection is reasonably assured, in accordance with ASC 606.

For a prospective All Team franchisee, this means that the franchisor recognizes initial franchise fees as revenue immediately upon signing the franchise agreement, regardless of when the franchisee's location opens or begins generating revenue. Franchisees should also be aware that royalties and other fees are calculated as a percentage of sales or billings, ensuring that All Team's revenue is directly tied to the performance of its franchisees. Understanding these revenue recognition policies is crucial for franchisees to manage their own financial planning and reporting accurately.