What does the All Team USER sell and assign to ATFC regarding their business?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
uter hardware and software ATFC will require, from time to time, that is necessary in order for ATFC to provide Services. USER agrees that it will permit ATFC to access data and statistical information and reports stored in or processed by USER. ATFC will keep all such data and statistical information and reports confidential unless there is a compelling and legitimate reason such as a subpoena or government requirement to do so. In such event, ATFC will attempt to notify USER in advance of any disclosure.
- C. Sale and Purchase of Customer Invoices. Subject to the provisions of Section VII.A. below, USER hereby sells and assigns to ATFC and ATFC hereby purchases from USER, all of USER's customer invoices arising from USER's Business ("Customer Invoices"). USER's sale and assignment of Customer Invoices to ATFC grants ATFC all of USER's rights, securities, guaranties and liens with respect to each Customer Invoice and all of USER's defenses and rights of offset with respect to any payments received by ATFC. These Customer Invoices, as a result of the sale to ATFC, become the accounts receivable of ATFC ("Accounts Receivable") and therefore ATFC shall not be obligated to, and shall not be liable for, exercising or refusing to exercise any rights granted to ATFC hereby. USER shall execute and deliver to ATFC assignments of the Customer Invoices, which will include, without limitation, copies of all original invoices, copies of the bills of lading, proofs of delivery, contracts or purchase orders, and/or purchase order numbers which correspond with such Customer Invoices, and time tickets or other proofs of service as may be required by ATFC. USER shall send the foregoing documentation to ATFC no later than noon Wednesday following the previous week.
- D. Purchase Price. The purchase price of each purchased Customer Invoice (the "Purchase Price") shall be Eighty percent (80%) of such Customer Invoice, less: (i) Funding Fee (as defined below); (ii) out-of-pocket expenses incurred by ATFC on behalf of USER; (iii) any adjustments for Late Accounts or Delinquent Accounts; (iv) any discounts made available or extended to the Customer;
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the USER (franchisee) sells and assigns their customer invoices to ATFC (All Team Franchise Corporation). Specifically, the USER sells and assigns to ATFC all customer invoices arising from the USER's temporary personnel service business. This grants ATFC all of the USER's rights, securities, guaranties, and liens related to each customer invoice. It also includes all of the USER's defenses and rights of offset regarding any payments received by ATFC.
This sale of customer invoices means that All Team essentially purchases the accounts receivable of the franchisee. In return, All Team pays the franchisee a Purchase Price for each invoice. According to the FDD, this Purchase Price is 80% of the customer invoice amount, less deductions for funding fees, out-of-pocket expenses incurred by ATFC, adjustments for late or delinquent accounts, discounts extended to the customer, and any fees due to ATFC under the Franchise Agreement and Processing Agreement.
As a result of this arrangement, the customer invoices become the accounts receivable of All Team. All Team is not obligated to exercise any rights granted to them through this sale. The franchisee is required to provide All Team with assignments of the customer invoices, including copies of original invoices, bills of lading, proofs of delivery, contracts or purchase orders, and time tickets or other proofs of service as required by All Team. This documentation must be sent to All Team no later than noon on Wednesday following the previous week.