How does All Team define 'Permanent Placement Gross Billings' for the purpose of calculating continuing license fees?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 1 – Continuing License Fees. Temporary Employment Gross Billings means all of the gross billings (less any Customer Adjustments) to customers derived from the Agency's Temporary Service Business. Permanent Placement Gross Billings means all billings from the Agency's Permanent Placement Business, including but not limited to, receipts from job placements, recruiting, conversions of temporary employment and any other similar function or related business, less any Customer Adjustments. "Customer Adjustment" is defined as any amount of credit or refund which you issue to a customer due to a customer complaint that is reasonably necessary to maintain customer relations. Customer Adjustment does not include credit for bad debts or uncollectible accounts which are your sole responsibility.
Source: Item 6 — OTHER FEES\ (FDD pages 10–13)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, Permanent Placement Gross Billings are used to calculate continuing license fees. All Team defines "Permanent Placement Gross Billings" as all billings from the Agency's Permanent Placement Business, including receipts from job placements, recruiting, conversions of temporary employment and any other similar function or related business, less any Customer Adjustments. Customer Adjustments are defined as any amount of credit or refund which you issue to a customer due to a customer complaint that is reasonably necessary to maintain customer relations.
It is important to note that Customer Adjustments do not include credit for bad debts or uncollectible accounts, which remain the franchisee's responsibility. The continuing license fee is 8% of Permanent Placement Gross Billings. This fee is due monthly by the 15th day of each month.
Prospective All Team franchisees should understand exactly what constitutes a 'Customer Adjustment' and ensure they have a clear process for managing customer complaints and issuing credits or refunds. They should also be aware that they cannot deduct bad debts or uncollectible accounts from their gross billings when calculating their continuing license fees. This could impact their profitability, especially if they operate in an industry or market with a high rate of bad debt.