Who has the sole discretion to apply any payments made by the All Team franchisee?

According to All Team's 2025 Franchise Disclosure Document, All Team Franchise Corporation (ATFC) has the sole discretion to apply any payments made by the franchisee. This means that All Team can decide how to allocate payments made by the franchisee towards any outstanding debts, fees, or amounts owed under the Franchise Agreement, the Processing Agreement, and the Funding Agreement.

This provision gives All Team significant control over the application of payments. For a prospective franchisee, this means that if there are multiple outstanding balances, All Team can choose which balance to apply a payment to, potentially prioritizing certain fees or debts over others. This could impact the franchisee's financial standing and ability to manage their cash flow effectively.

It is important for a potential All Team franchisee to understand the implications of this clause. Franchisees should maintain clear records of all payments and outstanding balances to ensure they are aware of how All Team is applying their payments. Franchisees should also seek clarification from All Team regarding their payment application policies to avoid any misunderstandings or disputes. This level of franchisor control over payment allocation is not uncommon, but franchisees should be diligent in monitoring their account status.