what does this mean ?

What it means is that you add the handicaps of your team members together and then your team handicap is a percentage of that total.

Scrambles are normally done like that. At ours it is 10%, so if the 4 players were 8, 12, 18, 25 the total would be 63 so the team handicap would be 6.3 to come off the final gross score.
 
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