What is the definition of 'Candidates' in the context of the All Team Permanent Placement Business?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
to FRANCHISEE and the other ATFC agency. Likewise, if FRANCHISEE assists another ATFC agency in placing a Candidate, the other ATFC agency will be required to equally share the placement fee with FRANCHISEE, after ATFC takes all of its fees from each party's half of the placement fee.
FRANCHISEE must provide for a guarantee period in its placement agreements whereby a replacement Candidate will be provided if the original Candidate is not found to be satisfactory within a specified period of time. If the Placement Fee was split between the FRANCHISEE and another ATFC agency, said ATFC agency that supplied the Candidate shall have the responsibility of providing a replacement to the Placement Customer. If said ATFC agency cannot supply a replacement Candidate, then it must refund the portion of the Placement Fee which it received back to the FRANCHISEE and FRANCHISEE shall be responsible for obtaining a replacement Candidate. Likewise, if another ATFC agency filled the job order with the assistance of the FRANCHISEE and the Placement Customer requires a replacement, FRANCHISEE will be responsible for providing a replacement Candidate or immediately refunding its portion of the Placement Fee back to the other ATFC agency. Notwithstanding the foregoing, ATFC is not responsible for the amount of the Placement Fee which is being refunded to the ATFC agency or to the FRANCHISEE, as the case may be, for failure to obtain a replacement Candidate.
If any disputes arise as to the sharing of any placement fees, a determination shall be made by ATFC and such determination shall be binding on the parties. ATFC is not responsible for payments due to FRANCHISEE of its share of any placements, unless the placement is made of a Candidate who was placed by ATFC with the assistance of FRANCHISEE.
B. Rights Reserved. ATFC reserves all rights not specifically granted to FRANCHISEE pursuant to this Agreement, all without compensation to FRANCHISEE, including the following: ATFC and its affiliates retain the right to operate and to franchise or license to third parties the right to operate businesses outside the Area using the Systems and Marks, or using other systems and marks. ATFC agrees that as long as FRANCHISEE complies with the terms of this Agreement, ATFC will not itself, or through affiliates, operate, franchise or license to a third party the right to operate an ATFC agency in the Area. Notwithstanding the foregoing, ATFC, its affiliates and other franchisees and licensees are permitted to (1) operate or license others to operate businesses similar to or the same as the Agency under different Marks anywhere, including within Area; (2) operate or license others to operate businesses that are different than the business operated by the Agency under the Marks or other marks, including within the Area (3) service National/Regional Accounts pursuant to Section II.C., below;
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
Based on the 2025 All Team Franchise Disclosure Document, the term 'Candidates' is referenced within the context of placement agreements and the operation of the Permanent Placement Business. However, the FDD does not provide an explicit definition of 'Candidates'.
Within the franchise agreement, All Team franchisees must guarantee their placements, offering a replacement candidate if the original one proves unsatisfactory within a specified timeframe. If the placement fee was shared with another All Team agency that supplied the candidate, that agency is responsible for providing the replacement. If they cannot, they must refund their portion of the fee to the franchisee, who then becomes responsible for finding a replacement.
All Team franchisees can service placement customers and candidates from anywhere, with a restriction: if a franchisee gets a job order outside their area, they must first offer it to the All Team agency operating in that location. Failure to do so results in fines: $1,000 for the first violation, $2,500 for the second, and $5,000 for the third and subsequent violations. The franchisee must also pay restitution of the profit derived from the wrongfully performed services to the agency that services that area, as applicable. If that All Team agency cannot or waives the right to fill the job order, in writing, the franchisee may fill it. In any event, franchisee must seek the assistance of other All Team agencies if it cannot fill a job order. If a Candidate who is hired by a Placement Customer is placed with the assistance of another All Team agency office, FRANCHISEE shall equally share the placement fee with the party who assisted in the placement.