Who can conduct audits of the All Team agency's affairs and records?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
M. Audit of Books and Records. All records shall be kept for a period of at least four (4) years following the end of each calendar year. ATFC may, from time to time, cause one or more complete audits to be made of the affairs and records relating to the operations of the Agency. Upon request by ATFC, FRANCHISEE shall make such books, records and information available to ATFC or its designated representative at all reasonable times for review and audit by ATFC at the place of business of the Agency.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, All Team Franchise Corporation (ATFC) has the authority to conduct audits of the financial records and operations of an All Team agency. ATFC can initiate these audits periodically.
As an All Team franchisee, you are obligated to provide access to all relevant books, records, and information to ATFC or its designated representatives during reasonable business hours at your agency's location. These audits are conducted by ATFC to ensure accurate reporting of financial data, particularly concerning Temporary Employment Gross Billings and/or Permanent Placement Gross Billings.
If an audit reveals that a franchisee has under-reported gross billings, the franchisee is responsible for reimbursing ATFC for the underpaid fees, along with interest calculated at the lesser of 1.5% per month or the maximum legal rate applicable in the agency's jurisdiction. Furthermore, should an audit determine that the fees paid to ATFC were deficient by more than 1%, the franchisee must cover the deficient amount and all costs associated with a subsequent audit to verify correct reporting. ATFC may also withhold up to $10,000 in customer payments pending the result of the audit, or for up to 12 months after termination, as a reserve for unpaid receivables and customer chargebacks.
Franchisees are required to maintain all records for at least four years following the end of each calendar year. This ensures that All Team has sufficient time to conduct audits and verify the accuracy of financial reporting. These audits are a standard practice in franchising to protect the brand and ensure compliance with the franchise agreement.