Does the All Team franchise agreement establish a partnership between ATFC and the franchisee?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, ATFC licenses others the right to operate a temporary and permanent employment agency in accordance with the Marks and the System described below; and
WHEREAS, FRANCHISEE desires to participate in the use of the System and Marks in connection with the operation of a franchised business under the terms and conditions set forth below;
NOW, THEREFORE, in consideration of the mutual promises and conditions contained herein, the parties agree as follows:
I. DEFINITIONS.
For purposes of this Agreement, the following terms shall have the meaning as set forth below:
A. "Agency" means the business which will be owned and operated by FRANCHISEE pursuant to this Agreement.
B. "ATFC agency" means the Agency and any other staffing agency operating under the System and Marks, whether owned by ATFC or any affiliate, or licensed or franchised by ATFC or any affiliate.
C. "Customer Adjustment" means any amount of credit or refund which FRANCHISEE issues to a customer due to a customer complaint that is reasonably necessary to maintain customer relations.
Customer Adjustment does not include bad debts or uncollectible accounts which are FRANCHISEE's sole responsibility.
- D. "FRANCHISEE" shall be deemed to include: (a) those persons and their spouses owning any interest in a corporate franchisee or a limited liability company; (b) all partners and their spouses owning any interest in a partnership franchisee; (c) the individual who owns a sole proprietorship franchisee and his or her spouse; and (d) the guarantors of this Agreement.
For purposes of determining ownership in a franchise, the interests owned by a husband and wife shall be considered one interest, and both husband and wife shall be obligated hereunder, regardless of whether the interest is owned by just one spouse or both spouses.
E. "Funding Agreement" means the Funding Agreement entered into between the FRANCHISEE and ATFC in order for ATFC to provide payroll funding for the Agency.
F. "Marks" means such service marks, trademarks, trade dress, trade names and copyrights, or any marks which may be considered confusingly similar thereto, as may presently exist, or which may be modified, changed, or acquired by ATFC or its affiliates for use in connection with the operation of the Agency.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the franchise agreement does not establish a partnership between All Team Franchise Corporation (ATFC) and the franchisee. The document outlines a franchisor-franchisee relationship where ATFC grants the franchisee the right and license to use its systems and marks to operate an agency within a specified area. The agreement explicitly states that the success of the business depends on the franchisee's ability as an independent business person.
All Team maintains control over certain aspects of the business, such as the approval of the agency's location and the right to develop and manage national/regional accounts. The franchisee is responsible for the day-to-day operations and financial obligations of their agency. The agreement includes provisions for the franchisee to operate independently, subject to compliance with All Team's standards and procedures.
The relationship is further defined by the franchisee's responsibility for customer adjustments and the requirement to adhere to All Team's operational guidelines. The franchisee is also required to obtain ATFC's consent for any changes in the agency's location. This structure indicates a franchisor-franchisee relationship rather than a partnership, where both parties share in the profits and losses of the business.
Overall, the All Team franchise agreement establishes a licensing arrangement where the franchisee operates under All Team's brand and system, but as an independent entity responsible for their agency's performance. The agreement does not create a partnership where ATFC shares in the franchisee's business profits or losses.