What is the fine for the third and subsequent violations of providing services outside of the All Team franchisee's designated area?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
in our sole and absolute discretion at any time.
Operations of Temporary Service Business within Area. You must operate the Temporary Service Business only within the Area. You may service customers even if the corporate office of a customer is located outside of the Area so long you provide the services in the Area. If a customer wants you to provide services outside of the Area, you will immediately refer the customer to the agency office that services that area. If the customer is not referred to the agency office that services that area, you 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. In addition, you will be required to pay restitution of the profit you derived from the wrongfullyperformed 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, you may service that customer outside of your area. If neither we nor any of our affiliates, nor any other franchisee provide services in the customer's area, you may provide temporary services to that customer. You will provide only the temporary service
Source: Item 12 — TERRITORY (FDD pages 23–26)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, franchisees are assigned an exclusive territory and must operate their temporary service and permanent placement businesses within that area. However, franchisees may service customers whose corporate offices are outside their designated area as long as the actual services are provided within the franchisee's territory.
If an All Team franchisee provides services outside of their designated area, and does not refer the customer to the appropriate agency, they will be charged a fine. The fine structure is $1,000 for the first violation, $2,500 for the second violation, and $5,000 for the third and each subsequent violation. In addition to these fines, the franchisee must also pay restitution to the agency that services the area where the services were wrongfully performed, compensating them for the profits derived from those services.
This policy is in place to protect each All Team franchisee's territory and ensure fair business practices within the franchise system. However, if the agency that services a particular area waives their right to service a customer in writing, the franchisee may then service that customer outside of their designated area. Additionally, if neither All Team nor any of its affiliates or other franchisees provide services in the customer's area, the franchisee may provide temporary services to that customer.