How will All Team advise the franchisee of the administrative payroll costs?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
If USER elects, at no additional charge to USER, ATFC will process the payroll for USER's administrative employees from USER'S account, based on the Wages as prescribed by USER after deducting and withholding there from an amount equal to all income, social security and other taxes, disability payments and deductions (except worker's compensation insurance premiums) which may be required by applicable law to be deducted and withheld as directed by USER. Further, ATFC will pay on behalf of USER, from USER'S account, based on Wages processed by ATFC pursuant to this Processing Agreement, all Direct Payroll Costs, which payments shall be made directly to the entities entitled to the receipt thereof, including any penalties due to late filing or error in calculating tax due, except to the extent attributable to any action or inaction of USER. The use of Pay Cards is highly recommended where allowed by law. However, payroll checks may be either printed in USER'S office (on printer approved by ATFC) or in ATFC's office and sent overnight to USER at USER's expense. ATFC will advise USER of the administrative payroll costs via electronic mail after payroll has been processed.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, if a franchisee elects to have All Team process payroll for their administrative employees, All Team will advise the franchisee of the administrative payroll costs via electronic mail after payroll has been processed. This service is provided at no additional charge to the franchisee. All Team will process the payroll from the franchisee's account based on the wages prescribed by the franchisee, after deducting and withholding the necessary taxes, disability payments, and deductions as required by law and directed by the franchisee.
All Team will also pay all direct payroll costs on behalf of the franchisee from the franchisee's account, including any penalties due to late filing or errors in calculating tax, unless the penalties are attributable to the franchisee's actions or inaction. The FDD recommends the use of pay cards where allowed by law, but payroll checks can be printed in the franchisee's office (on an All Team-approved printer) or at All Team's office and sent overnight to the franchisee at the franchisee's expense.
This arrangement means that franchisees need to ensure they have sufficient funds in their account for All Team to make these payments. Any shortage of funds will be considered a material default under the agreement. Franchisees should also be aware that they must grant All Team the authority to file state and federal payroll taxes on their behalf by executing IRS Form 2848. Annually, All Team will provide the franchisee with a statement of wages earned and taxes withheld for each employee processed by All Team.