How are the Continuing License Fees for an All Team franchise collected?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
EM 6. OTHER FEES***
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Continuing License Fees (Note 1) | The greater of Minimum Fee ($600-$1,250) or 3% of Temporary Employment Gross Billings and 8% of Permanent Placement Gross Billings | By noon Wednesday based on the prior week's Temporary Employment Gross Billings Permanent Placement Gross Billings are due monthly by the 15th day of each month | The Continuing License Fees are deducted from the Temporary Gross Billings collected by us under th |
Source: Item 6 — OTHER FEES\ (FDD pages 10–13)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, Continuing License Fees are collected differently based on the type of gross billings. For Temporary Employment Gross Billings, the fees are due by noon each Wednesday, calculated from the prior week's gross billings. For Permanent Placement Gross Billings, the fees are due monthly, by the 15th day of each month. The Continuing License Fees are deducted from the Temporary Gross Billings collected by All Team under the Funding Agreement.
The Continuing License Fees are the greater of a minimum fee or a percentage of gross billings. The minimum fee ranges from $600 to $1,250, depending on the year of operation. Alternatively, the franchisee will pay 3% of Temporary Employment Gross Billings and 8% of Permanent Placement Gross Billings.
This collection method, where fees are directly deducted from gross billings collected by the franchisor, is not uncommon in franchise systems, particularly where the franchisor provides funding or payroll services. This arrangement ensures that All Team receives its fees promptly and reduces the administrative burden on the franchisee. However, it also means that franchisees must carefully track their gross billings and understand how the fees are calculated to ensure accuracy and avoid disputes.