As an All Team franchisee, must I comply with state and local regulations pertaining to licensing of employment agencies and recruiting firms?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
You must comply with any state and local regulations pertaining to licensing of employment agencies and recruiting firms.
FRANCHISEE acknowledges and agrees that the Agency is regulated by certain states; that federal and state governments, municipalities, regulatory bodies, or others may regulate the Agency now or in the future; and that many states regulate employment agencies and recruiting services.
FRANCHISEE represents that it has investigated and ascertained the laws and regulations specific to the activities franchised hereunder that affect the Agency, including federal, state, municipal and local laws and regulations.
FRANCHISEE shall obtain all licenses and permits required by any applicable federal, state, municipal, and local law, rule, regulation ordinance and code.
At no time is ATFC required to inform FRANCHISEE of any federal, state, municipal, or local law, rule, regulation, ordinance code, or tax.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–9)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, as a franchisee, you are required to comply with all state and local regulations pertaining to the licensing of employment agencies and recruiting firms. This means you must investigate and understand the specific laws and regulations in your area that govern the operation of an employment agency. All Team franchisees must also obtain all necessary licenses and permits required by federal, state, municipal, and local laws, rules, regulations, ordinances, and codes.
This requirement places the responsibility on you, the franchisee, to ensure your All Team agency operates legally and in compliance with all applicable laws. All Team is not required to inform you of any federal, state, municipal, or local law, rule, regulation, ordinance code, or tax. You are expected to have investigated and ascertained the laws and regulations specific to the activities franchised under the agreement that affect the agency, including federal, state, municipal, and local laws and regulations.
Failing to comply with these regulations could result in fines, penalties, or even the closure of your All Team franchise. It is crucial to consult with legal and business professionals to ensure you meet all licensing and regulatory requirements in your specific location. This is a common requirement in the franchise industry, as franchisees are generally responsible for adhering to local laws and regulations.