What is the All Team USER required to do with the Purchase Price funds received from ATFC?

According to All Team's 2025 Franchise Disclosure Document, the USER (franchisee) is required to deposit the Purchase Price funds received from ATFC (All Team Franchise Corporation) into their account. This requirement ensures that the franchisee has sufficient funds available to cover checks that ATFC will prepare in accordance with the Processing Agreement. The Purchase Price is the payment All Team provides to the franchisee for the Customer Invoices, which is typically 80% of the invoice value, less fees and deductions.

This stipulation is crucial for maintaining a smooth financial operation between the franchisee and All Team. By mandating that the Purchase Price funds are deposited into the franchisee's account, All Team aims to ensure that there are adequate funds to cover financial obligations, particularly those related to payroll processing for temporary personnel. This process helps to avoid potential issues with payments and ensures that the franchisee can meet their financial commitments.

The difference between the total Account Receivable and the Purchase Price percentage is referred to as the "Deferred Share." For instance, if the Purchase Price is 80% of the Customer Invoice, the Deferred Share is the remaining 20%. This Deferred Share is remitted to the USER once ATFC receives full payment from the customer on each Account Receivable, typically by the Friday of the following week after ATFC receives the payment.

In summary, the requirement to deposit the Purchase Price funds is a key component of All Team's financial management strategy, designed to ensure financial stability and operational efficiency for both the franchisee and the franchisor. Franchisees should be aware of this requirement and plan their finances accordingly to maintain compliance and avoid any disruptions in their business operations.