What are some examples of expenses the Advertising Fee may be used for by All Team?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right to reinstate the National Advertising Fund ("Advertising Fund") at some future date. The purpose of the Advertising Fund is brand recognition and acceptance of the Marks for the benefit of our franchisees. We will administer the Advertising Fund. Your contribution, on a monthly basis, is to pay an Advertising Fee of 1% of Temporary Employment Gross Billings and 2% of Permanent Placement Gross Billings to the Advertising Fund. The Advertising Fee may be used for production costs, administration, website maintenance and design, membership in industry associations, and media placement costs. These funds may be used for advertising on television, radio, direct marketing mailings, the newspaper, the Internet and other media. We have the right to determine the type of advertising and the media in which it will appear. The Advertising Fund is not, and will not be, an asset of ours. Our affiliates, if any, will contribute the same percentage for each Agency that it or its affiliates operate. We do not use any money you contribute to the Advertising Fund that is principally a solicitation for the sale of franchises.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 18–23)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the Advertising Fee, should the National Advertising Fund be reinstated, can be used for several specific purposes. This fund is intended for brand recognition and acceptance of All Team's marks, benefiting all franchisees. Franchisees contribute to this fund monthly by paying an Advertising Fee of 1% of Temporary Employment Gross Billings and 2% of Permanent Placement Gross Billings.
The FDD specifies that the Advertising Fee may cover various expenses, including production costs, administration, website maintenance and design, membership in industry associations, and media placement costs. The funds may be allocated to advertising through television, radio, direct marketing mailings, newspapers, the Internet, and other media channels. All Team retains the right to determine the type of advertising and the specific media outlets used.
It is important to note that the Advertising Fund is not considered an asset of All Team, and any affiliates of All Team will contribute the same percentage for each agency they operate. Furthermore, All Team states that the money contributed to the Advertising Fund will not be used for soliciting the sale of franchises. This separation of funds and intended use provides some assurance to franchisees that their contributions will be directed towards advertising and brand-building activities. All Team will maintain separate bookkeeping accounts for the fund and will provide an unaudited financial statement of the account if requested in writing.