When will All Team send the Purchase Price to the franchisee?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
The Funding Agreement provides that we will purchase your customer invoices which become our Accounts Receivables each week minus a Deferred Share. Currently this Deferred Share is 20% of the Accounts Receivables. We will advance to you the 80% balance of your Accounts Receivables less: (i) Funding Fee and Processing Fee; (ii) out-of-pocket expenses incurred by us on your behalf; (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 Fee, Technology Fee required under the Franchise Agreement, Funding Agreement and Processing Agreement and any other payments due ("Purchase Price"). The Purchase Price will be sent to you no later than Friday of each week based on the Accounts Receivables purchased for the prior week. You are responsible to deposit these amounts you receive from us into your business account to make sure adequate funds are in place to cover your payroll checks, related payroll taxes and operating expenses. In the event that our finance agreements with our banks are reduced, we have the right to reduce the 80% accordingly.
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, if All Team approves a franchisee for payroll funding, the Purchase Price, which is the balance of the franchisee's Accounts Receivables after deductions, will be sent to the franchisee no later than Friday of each week. This payment is based on the Accounts Receivables purchased for the prior week. The Purchase Price is calculated from the 80% balance of Accounts Receivables less several deductions: the Funding Fee and Processing Fee, out-of-pocket expenses incurred by All Team on the franchisee's behalf, adjustments for Late or Delinquent Accounts, discounts extended to the Customer, and any Continuing License Fee, Advertising Fee, and Technology Fee required under the Franchise Agreement, Funding Agreement, and Processing Agreement.
It is the franchisee's responsibility to deposit the funds received from All Team into their business account to ensure sufficient funds are available to cover payroll checks, related payroll taxes, and operating expenses. All Team directly bills the franchisee's customers under "All Team Staffing" and the franchisee's name, with instructions for customers to remit payment to All Team's designated financial institution. The funds received from customers are applied to each invoice, and the reserve amount held out by All Team's funding source, currently 20%, is paid to the franchisee with their next payment for weekly sales, also no later than Friday of each week.
If a customer's invoice remains unpaid for more than 90 days from the invoice date, or if the customer becomes bankrupt or insolvent, the amount is considered a "Delinquent Account." The full amount of each Delinquent Account will be deducted from the Purchase Price or, at All Team's discretion, paid by the franchisee to All Team upon demand. However, any Delinquent Account that All Team subsequently collects will be added to the next payment of the franchisee's Purchase Price, less any other amounts due to All Team. This funding arrangement is subject to change if All Team's finance agreements with their banks are reduced, in which case All Team reserves the right to reduce the 80% advance accordingly.