What are 'Direct Payroll Costs' that ATFC will prepare on behalf of All Team franchisees?

According to All Team's 2025 Franchise Disclosure Document, Direct Payroll Costs that ATFC will prepare on behalf of the franchisee (USER) include the franchisee's share of federal social security taxes, federal and state unemployment taxes and contributions, disability insurance premiums, any other direct or indirect taxes based on wages, sales or receipts that may be levied and which are the legal obligation of an employer or provider of temporary employment services to collect and/or remit, and any insurance premium based upon payrolls (other than worker's compensation insurance premiums) which is a legal obligation of an employer to pay with respect to Wages on Temporary Employment Gross Billings derived from the placement of temporary personnel employees by USER in the operation of the Business except in the case of administrative personnel and in such case in accordance with information provided by USER. ATFC will make these payments directly to the entities entitled to receive them.

This means that All Team franchisees are responsible for covering various payroll-related taxes and premiums associated with their temporary personnel. These costs are calculated and paid by ATFC on behalf of the franchisee, ensuring that all legal obligations related to payroll are met. However, the franchisee must ensure that sufficient funds are available in their account for ATFC to make these payments.

It's important to note that while ATFC handles the preparation and payment of these Direct Payroll Costs, the franchisee remains ultimately responsible for the accuracy of the information provided to ATFC. Any penalties or errors resulting from the franchisee's actions or inaction will be their responsibility. Additionally, worker's compensation insurance premiums are excluded from Direct Payroll Costs and must be handled separately by the franchisee.