What is the term length of the Funding Agreement offered by All Team?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
Currently we, in our sole discretion, are offering funding of temporary payrolls to you based on availability from our lending institutions and your creditworthiness at the time you execute your Franchise Agreement. If approved by us and our lending institution, you will sign a Funding Agreement (the "Funding Agreement") which is attached in Exhibit C. The Funding Agreement has a 3 year term which is automatically renewable for additional 1 year terms.
Source: Item 10 — FINANCING (FDD pages 17–18)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the Funding Agreement has an initial term of 3 years. This agreement is automatically renewable for additional 1-year terms, providing a mechanism for continued funding if the franchisee and All Team agree.
This funding is contingent upon approval from All Team and their lending institution, as well as the franchisee's creditworthiness at the time of executing the Franchise Agreement. The Funding Agreement, outlined in Exhibit C, is a crucial component for franchisees seeking financial assistance for temporary payroll needs.
The automatic renewal feature offers both stability and flexibility. Franchisees can rely on continued funding as long as they meet the necessary criteria and both parties are in agreement. However, franchisees should carefully review the terms of the Funding Agreement, particularly the conditions for renewal and any potential changes in terms or fees upon renewal. Understanding these details is essential for managing their financial obligations and maintaining a healthy business relationship with All Team.