What rights does All Team Finance Company (ATFC) have regarding the collection of Accounts Receivable for All Team?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
ll be assessed after the Customer Invoice amount has been delinquent for a period of 30 days.
V. Deductions from Purchase Price. USER agrees that ATFC will deduct the Continuing License Fees, Advertising Fees, Technology Fees, Processing Fees and any other amounts due under the Franchise Agreement, the Processing Agreement and this Agreement from the weekly Purchase Price. In addition, USER agrees that ATFC is permitted to deduct any other amounts due to ATFC or its affiliates.
VI. Collection of Accounts Receivable. USER hereby appoints ATFC as its lawful agent and attorney-in-fact with full authority to do any and all lawful things necessary for the fulfillment of this Funding Agreement, including the following in order to collect the Accounts Receivable:
A. Invoicing Customers. Pursuant to the Processing Agreement and the Franchise Agreement, ATFC will generate and mail or email invoices to Customers from information provided by USER with instructions to the Customer to remit payment to All Team Franchise Corporation, 500 N. West Shore Boulevard, Suite 300, Tampa, FL 33609 or such other address as ATFC may designate in writing. All invoices for services rendered shall be transmitted to the Customer and each such invoice shall bear a notice that they have been sold and assigned to, are owned by and are payable directly and only to ATFC. With regard to each invoice, USER agrees that ATFC shall have access to all such information or documents as ATFC in its discretion may request from time to time. In the event USER fails to cause ATFC to be provided with copies of any invoices or other documentation when requested by ATFC, such Account Receivable reflected by such invoice shall automatically revert back to USER (regardless of any prior approval) and ATFC shall have no credit risk with respect to such Account Receivable. Each invoice shall bear the terms of sale and no change from the original terms of sale shall be made without ATFC's prior written consent.
B. Apply Remittances. ATFC will receive, retain and apply all remittances tendered in payment of Accounts Receivable pursuant to the provisions of this Agreement. ATFC shall credit as paid all payments by Customers of purchased Accounts Receivable and other payments on behalf of USER promptly after crediting such payment to the Customer's Invoice. No check, draft or other instrument received by ATFC shall constitute final payment unless and until such check; draft or other instrument shall have been actually collected on behalf of ATFC in immediately available funds.
C. ATFC's Collection Efforts. ATFC shall have the right, but not the obligation, to contact and deal with Customers for the collection of Accounts Receivable in such manner, as it deems necessary, including without limitation, the right to advise Customers of ATFC's interest in and ownership of the Accounts Receivable of USER and to collect such amounts. Although ATFC provides as a service to USER a credit investigation of the client through a third party, the final decision on whether or not to extend credit shall rest with USER and ATFC is not responsible for non-payment by Customer or the creditworthiness of the Customer, nor is ATFC responsible for the accuracy of information provided by third parties. Any charge for credit reports may be passed on to USER
As owner of the purchased Accounts Receivable, ATFC shall have the right to (a) bring suit, or otherwise enforce collection of the purchased Account Receivable in the name of USER or ATFC, (b) modify the terms of payment, settle, compromise or release, in whole or in part, any amounts owing, on terms ATFC may deem advisable, and (c) issue credits in the name of USER or ATFC. Any payments made to either USER or ATFC from, or credits issued to a Customer shall be applied first to the Accounts Receivable owing by such Customer, irrespective of instructions of the Customer or the invoice dates of such Accounts Receivable or the manner in which payment is made, and ATFC shall have recourse to USER to the extent any such payment is made directly to USER.
D. Restriction of Receipt of Customer Payments**.** Except as USER is specifically permitted hereunder, USER shall not (i) render bills or statements to its Customers, (ii) take possession of, receive, endorse or collect any sum or other consideration in payment of any Accounts Receivables, or (iii) take or omit to take any other step or act which might reasonably be assumed to interfere with or delay Customers' payment and ATFC's collection of any Accounts Receivable. If payment of any bill or statement, whether rendered by ATFC or USER, is made to or received by USER, such payment shall be deemed to have been received by USER on behalf of and in trust for ATFC, and USER shall immediately forward the same, properly endorsed, if necessary, to ATFC.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, All Team Finance Company (ATFC) has extensive rights regarding the collection of Accounts Receivable. ATFC is appointed as All Team's lawful agent and attorney-in-fact, granting them full authority to take necessary actions to fulfill the Funding Agreement and collect Accounts Receivable. This includes generating and sending invoices to customers with instructions to remit payments directly to All Team Franchise Corporation or another designated address. All invoices must state that they have been sold and assigned to, are owned by, and are payable only to ATFC. ATFC also has the right to access any information or documents related to invoices as they deem necessary.
ATFC has the right, but not the obligation, to contact and deal with customers for the collection of Accounts Receivable in any manner they deem necessary. This includes advising customers of ATFC's interest in and ownership of the Accounts Receivable and collecting such amounts. As the owner of the purchased Accounts Receivable, ATFC can bring suit or otherwise enforce collection in the name of All Team or ATFC, modify payment terms, settle, compromise, or release amounts owing, and issue credits in the name of All Team or ATFC. Any payments made to either All Team or ATFC will be applied first to the Accounts Receivable owing by the customer.
All Team is restricted from interfering with ATFC's collection efforts. All Team cannot render bills or statements to customers, take possession of, receive, endorse, or collect any payments for Accounts Receivable, or take any action that might interfere with customer payments to ATFC. If All Team receives any customer payments, they must immediately forward them to ATFC. Failure to do so constitutes a conversion of ATFC's funds and may result in termination of the Funding Agreement and other legal remedies. Even after termination of the Funding Agreement, ATFC retains the right to collect payments on delinquent accounts as a collection agent for All Team until all amounts owed to ATFC are paid.
ATFC may charge or offset against any funds due to All Team the full uncollected amount of any customer deduction or offset, any Account Receivable not paid in full when due, any purchased Account Receivable where All Team breaches warranties, any anticipation deducted by a customer, and payments received by ATFC that they are required to return. While ATFC is not obligated to commence collection efforts, they may do so at their discretion, with the costs of collection borne by All Team. ATFC also reserves the right to conduct a post-termination audit and withhold up to $10,000 in customer payments for up to 12 months as a reserve for unpaid receivables or customer chargebacks.