According to the All Team FDD, what are 'National/Regional Accounts'?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- G. "National/Regional Accounts" means those Temporary Service Business and Permanent Placement Business accounts, with more than one location covered by either an agreement for services, written or oral, and/or based on past practices which are not located solely in the area of one franchisee as determined by ATFC in its sole discretion.
C. "National/Regional" Accounts. ATFC may develop National/Regional Accounts from time to time and FRANCHISEE may develop accounts that may qualify as a National/Regional Account. National/Regional Accounts obtained by FRANCHISEE for service outside FRANCHISEE's Area must be referred to ATFC and shall be treated as a National/Regional Account; however, ATFC reserves the right to reject any such account in ATFC's sole judgment and discretion. All National/Regional Accounts shall be deemed to be the property of ATFC and FRANCHISEE shall have no claim to same. As such, National/Regional Accounts and related agreements shall be negotiated, managed, and controlled solely by ATFC or its affiliates, even if the National/Regional Account was procured by FRANCHISEE. Any information supplied to ATFC by FRANCHISEE regarding National/Regional Accounts, and supplemental information as may be required by ATFC may be disseminated to all franchisees that may be required to service those accounts. FRANCHISEE agrees that providing account information to other franchisees is in the best interest of the Systems as a whole and for enhancement of opportunities of all within the Systems.
If one or more locations of a National/Regional Account fall within FRANCHISEE's Area, ATFC will first offer FRANCHISEE the opportunity to provide such services for said locations on the terms and conditions that it has established with such National/Regional Account. FRANCHISE is not required to service a National/Regional Account and if FRANCHISEE fails to accept such offer in the manner and within the time period that ATFC specifies, ATFC has the right to service the account itself, or may authorize other franchisees, or affiliate-owned or licensee-owned agencies, to provide such services. Notwithstanding the foregoing, even if the FRANCHISEE fails to accept the job order to service a certain National/Regional Account, the FRANCHISEE may fill subsequent job orders when FRANCHISEE has temporary staff or management candidates available. However, the decision to accept the FRANCHISEE as a provider of services for the National/Regional Account must ultimately rest with the National/Regional Account. All National/Regional Accounts will be billed by ATFC, and customer payments for all National/Regional Accounts will be collected by ATFC exclusively and forwarded to FRANCHISEE as applicable.
In order for FRANCHISEE to be permitted to service a National/Regional Account, FRANCHISEE must: (i) maintain the insurance required by the National/Regional Account customer, and add the National/Regional Account customer and All Team Franchise Corporation as additional insureds, (ii) agree to be bound by and comply with all of the terms and conditions of the National/Regional Account and perform all of the obligations contained in the agreement between ATFC and the National/Regional account customer to the extent within their operational control; (iii) comply with any and all audits required by the National/Regional account customer; and (iv) and sign any document required by the National/Regional account customer. Uniformity and quality of services offered by all ATFC agencies to National/Regional Accounts is of utmost importance to ATFC and the entire System. If FRANCHISEE violates the National/Regional Account requirements described herein and in the Manual, FRANCHISEE agrees that ATFC will be damaged. These damages will be calculated at $1,000 for the first violation, $2,500 for the second violation and $5,000 for the third violation. After the third violation, FRANCHISEE may no longer be permitted to service National/Regional Accounts. ATFC has the right to collect these amounts in addition to exercising any and all other rights it may have for non-compliance under this Agreement. FRANCHISEE agrees that a precise calculation of the full extent of the damages that ATFC will incur from the improper servicing of National/Regional Accounts are difficult to determine and all parties desire certainty in this matter and agree that the damages provided here are reasonable and constitute liquidated damages and not a penalty.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, National/Regional Accounts are defined as temporary service and permanent placement business accounts with more than one location covered by an agreement for services (written or oral) or based on past practices. These accounts are not located solely within one franchisee's area, as determined by All Team at its discretion.
All Team retains ownership of these National/Regional Accounts, meaning franchisees have no claim to them. All Team manages the negotiation, management, and control of these accounts, even if a franchisee initially procures the account. Franchisees may be required to share information about these accounts with other franchisees within the All Team system to enhance opportunities for everyone.
If a National/Regional Account has locations within a franchisee's area, All Team will first offer the franchisee the opportunity to service those locations under the terms established with the account. However, the franchisee isn't obligated to accept the offer. If the franchisee declines or cannot service the account, All Team can authorize other franchisees, affiliate-owned agencies, or licensee-owned agencies to provide the services. Ultimately, the National/Regional Account customer has the final decision on who provides services. All billing and payment collection for National/Regional Accounts are handled exclusively by All Team, with applicable payments forwarded to the franchisee.
Franchisees must meet specific requirements to service a National/Regional Account, including maintaining necessary insurance, adhering to the terms of the agreement between All Team and the customer, complying with audits, and signing required documents. Failure to meet these requirements can result in penalties: $1,000 for the first violation, $2,500 for the second, and $5,000 for the third. After three violations, the franchisee may lose the ability to service National/Regional Accounts. These amounts are considered liquidated damages to compensate All Team for the difficulties in calculating the full extent of damages from improper servicing.