What is the exception that allows an All Team franchisee to service a customer outside their area?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
ice through only 1 office, ATFC may require FRANCHISEE to open additional offices all within the limits or boundaries of the Area. In such event, the number of offices which need to be established in the Area and the timing of establishing these offices will be described in Exhibit I.
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- Operations of Temporary Service Business. FRANCHISEE must operate the Temporary Service Business solely within the Area. FRANCHISEE may service customers even if the corporate office of a customer is located outside of the Area so long as the services to be provided for the customer will be located in the Area. If a customer wishes FRANCHISEE to provide services outside of the Area, FRANCHISEE shall immediately refer said customer to the agency office that services that area. If the customer is not referred to the agency office that services that area, FRANCHISEE will be charged a fine of $1,000 for the first violation, $2,500 for the second violation, and $5,000 for the third and each subsequent violation. ATFC has the right to collect these amounts in addition to exercising any and all other rights it may have for non-compliance under this Agreement. In addition, FRANCHISEE will be required to pay restitution of the profit FRANCHISEE derived from the wrongfully-performed services to the agency that services that area, as applicable. If the agency office that services that area waives the right to service that customer, in writing, FRANCHISEE may service that customer outside of its Area. If neither ATFC, any of its affiliates or licensees, nor any other agency services said area, FRANCHISEE may provide temporary services to said customer. FRANCHISEE's Agency shall provide only the temporary services set forth in the Confidential Operations Manual.
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- Operations of Permanent Placement Business. FRANCHISEE must operate the Permanent Placement Business within the Area out of the same office that the Temporary Service Business is operated. FRANCHISEE's Agency shall provide only the placement services set forth in the Confidential Operations Manual. FRANCHISEE's customers for Permanent Placement Business ("Placement Customers") are those seeking to hire permanent personnel ("Candidates").
FRANCHISEE's Placement Customers will typically be located within the Area. However, FRANCHISEE may service Placement Customers and Candidates from anywhere within or outside of the Area except for the following restriction: If FRANCHISEE obtains a request to fill a position ("job order") outside of its Area, FRANCHISEE must first offer the ATFC agency (i.e. an agency operated by any affiliate or other franchisee or licensee) that operates in the location of the job, the opportunity to fill that job order.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, a franchisee typically operates within their designated area. However, there are specific circumstances under which an All Team franchisee can service customers outside of their assigned area.
The primary exception is if the All Team agency that normally services the area where the job order is located cannot fulfill the order or provides written consent waiving their right to do so. In this case, the franchisee is permitted to fill the job order. However, the franchisee must first offer the job to the All Team agency operating in the location of the job. Failure to do so results in a fine: $1,000 for the first violation, $2,500 for the second, and $5,000 for the third and subsequent violations. Additionally, the franchisee must pay restitution to the agency that services the area, covering the profits derived from the improperly performed services.
Another exception exists for temporary service businesses. An All Team franchisee may service customers whose corporate office is outside their area, as long as the actual services provided are within the franchisee's designated area. If a customer requests services outside of the franchisee's area, the franchisee must immediately refer the customer to the appropriate All Team agency servicing that area. If that agency waives their right to service the customer in writing, or if no All Team agency services the area, the franchisee may provide temporary services to that customer.
These rules are designed to protect the territories of existing All Team franchisees while still allowing flexibility in certain situations. Franchisees should be aware of these restrictions and the associated penalties for non-compliance.