What is an All Team USER required to do if they receive a customer payment?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
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. Failure to immediately remit to ATFC any customer payments that may come into USER's possession shall constitute a conversion of ATFC's funds for which this Funding Agreement and any other agreement with ATFC may, without prejudice to any of ATFC's other rights, be immediately terminated at ATFC's election. In the event of such a termination, ATFC is entitled to all remedies at law or in equity and for which USER may be subject to civil remedies, including reimbursement of its attorney's fees in connection with such a proceeding.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, All Team USERs are generally prohibited from receiving customer payments directly. All Team USERs are not to render bills or statements to customers, take possession of, receive, endorse, or collect any payment for accounts receivable, or take any action that could interfere with customer payments to All Team.
However, if a customer makes a payment to the All Team USER, the USER is required to forward that payment immediately to All Team. The payment is deemed to be held in trust for All Team, and must be properly endorsed, if necessary, before being sent to All Team.
Failure to remit customer payments immediately to All Team is considered a breach of the Funding Agreement. This breach could lead to immediate termination of the Funding Agreement and other agreements with All Team, without affecting All Team's other legal rights. In such a case, All Team is entitled to legal remedies, and the All Team USER may be subject to civil penalties, including covering All Team's attorney's fees.