What is All Team required to do with the full payment received from customers' invoices?
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, when All Team receives full payments from a franchisee's customers, they are required to apply the full payment to each invoice. All Team is also required to pay the franchisee the reserve amount held out by their funding source, which is currently 20%, with the franchisee's next payment for their weekly sales. This payment is made no later than Friday of each week.
This process is part of All Team's payroll funding program, where they purchase the franchisee's customer invoices, which then become All Team's accounts receivables. The franchisee is advanced 80% of the accounts receivable balance, less various fees and deductions. The remaining 20% is held as a reserve and paid out with the next weekly sales payment after the customer has paid their invoice.
This arrangement means that All Team franchisees do not directly handle customer payments. Instead, customers remit payments directly to All Team's designated financial institution. This system centralizes payment processing and allows All Team to manage the accounts receivable and funding process. Franchisees need to understand this process to manage their cash flow, as they receive the majority of the invoice amount upfront but must wait for the reserve payment after the customer pays.