Is the Advertising Fund considered an asset of All Team?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right to reinstate the National Advertising Fund ("Advertising Fund") at some future date. The purpose of the Advertising Fund is brand recognition and acceptance of the Marks for the benefit of our franchisees. We will administer the Advertising Fund. Your contribution, on a monthly basis, is to pay an Advertising Fee of 1% of Temporary Employment Gross Billings and 2% of Permanent Placement Gross Billings to the Advertising Fund. The Advertising Fee may be used for production costs, administration, website maintenance and design, membership in industry associations, and media placement costs. These funds may be used for advertising on television, radio, direct marketing mailings, the newspaper, the Internet and other media. We have the right to determine the type of advertising and the media in which it will appear. The Advertising Fund is not, and will not be, an asset of ours. Our affiliates, if any, will contribute the same percentage for each Agency that it or its affiliates operate. We do not use any money you contribute to the Advertising Fund that is principally a solicitation for the sale of franchises.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 18–23)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the National Advertising Fund is explicitly stated not to be an asset of All Team. All Team reserves the right to reinstate this fund at a future date to promote brand recognition for the benefit of its franchisees.
Franchisees contribute to this fund through an Advertising Fee, calculated as 1% of Temporary Employment Gross Billings and 2% of Permanent Placement Gross Billings. These fees are earmarked for specific uses, including production costs, administration, website maintenance and design, membership in industry associations, and media placement costs across various advertising channels like television, radio, direct marketing, newspapers, and the Internet. All Team retains the authority to determine the advertising type and media outlets.
The FDD specifies that All Team's affiliates will contribute the same percentage for each agency they operate. Furthermore, the funds collected for advertising will be kept in a separate account, distinct from All Team's other monies, and used solely for the outlined advertising purposes. All Team will maintain separate bookkeeping accounts for the Advertising Fund and provide an unaudited financial statement of the account if requested by a franchisee in writing.