In the event of a split placement fee, who is responsible for providing a replacement candidate for All Team?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
You must provide for a guarantee period in your 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 you and another All Team agency, the All Team agency that supplied the Candidate will be responsible for providing a replacement to the Placement Customer. If the All Team agency cannot supply a replacement Candidate, then it must refund the portion of the Placement Fee which it received back to you and you will be responsible for obtaining a replacement Candidate. Likewise, if another All Team agency filled the job order with your assistance and the Placement Customer requires a replacement, you will be responsible for providing a replacement Candidate or immediately refunding your portion of the Placement Fee back to the other All Team agency. However, in no event will we be responsible for the amount of the Placement Fee which is being refunded to the All Team agency or to you, as the case may be, for failure to obtain a replacement Candidate.
Source: Item 12 — TERRITORY (FDD pages 23–26)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the responsibility for providing a replacement candidate in the event of a split placement fee depends on which All Team agency supplied the original candidate. If the placement fee was split between two All Team agencies, the agency that initially provided the candidate is responsible for finding a replacement if the original candidate is not satisfactory within the guarantee period outlined in the placement agreement.
However, if the All Team agency that supplied the initial candidate cannot find a suitable replacement, they are then obligated to refund their portion of the placement fee back to the other All Team agency involved. In this scenario, the responsibility for securing a replacement candidate shifts to the All Team agency that initially sought assistance in filling the position. Alternatively, that agency can refund their portion of the placement fee.
It's important to note that All Team itself will not be responsible for refunding any portion of the placement fee to either franchisee in the event that a replacement candidate cannot be secured. This arrangement ensures that the responsibility for candidate replacement or fee reimbursement remains between the All Team franchisees involved in the split placement.