What does All Team consider to be persuasive evidence of an arrangement for revenue recognition?

According to All Team's 2025 Franchise Disclosure Document, the company recognizes revenue when services are provided, there is persuasive evidence of an arrangement, the price is fixed, and collection is reasonably assured. This policy is in accordance with ASC 606, which amended the existing accounting standards for revenue recognition and was adopted by All Team in 2019.

For a prospective All Team franchisee, this means that revenue from their temporary employment and management placement services will only be officially recognized when these specific conditions are met. The existence of "persuasive evidence of an arrangement" is one key factor. While the FDD does not explicitly define what constitutes "persuasive evidence," it generally refers to documentation or other proof that a clear agreement exists between All Team and its customers for the services provided.

It is important for franchisees to maintain thorough and accurate records of their customer agreements and service provisions to ensure proper revenue recognition. Franchisees should seek clarification from All Team regarding the specific types of documentation or processes that are considered acceptable as "persuasive evidence" to avoid any discrepancies in financial reporting. Understanding these requirements will help franchisees accurately track their earnings and comply with All Team's financial reporting standards.