Under what condition does All Team charge an Accounts Receivable Service Charge?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
You will pay us a one-time Funding Fee of 1.5% of the Customer Invoice value at the time we purchase the Customer Invoice. If the Customer Invoice is not paid within 30 days from the Customer Invoice date, then we will charge you an Accounts Receivable Service Charge of 0.05% per day of the outstanding amount for any delinquent amount up until 90 days from the Customer Invoice date.
Source: Item 10 — FINANCING (FDD pages 17–18)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, an Accounts Receivable Service Charge is applied if a customer invoice remains unpaid for more than 30 days. Specifically, All Team will charge 0.05% per day of the outstanding amount. This charge applies to the delinquent amount and continues up to 90 days from the original Customer Invoice date.
This policy means that if an All Team franchisee's customer does not pay an invoice within the first 30 days, the franchisee will incur a daily service charge on the unpaid amount. This charge, though seemingly small at 0.05% per day, can accumulate over time, especially if the invoice amount is substantial. It is crucial for franchisees to manage their customer relationships and payment terms effectively to minimize the risk of these charges.
Furthermore, if an account remains unpaid for more than 90 days, it is then classified as a "Delinquent Account." The full amount of any Delinquent Account will be deducted from the franchisee's Purchase Price or, at All Team's election, must be paid by the franchisee upon demand. This highlights the importance of franchisees ensuring timely payments from their customers to avoid both the daily service charges and the potential deduction of the full invoice amount from their payments.