What is the All Team franchisee obligated to do at their own expense regarding customer disputes?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. Customer Disputes and Claims.
USER agrees to notify ATFC immediately of all returns and allowances and of all disputes made by Customers and to adjust all Disputes at its own expense, issuing credit memoranda promptly.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the franchisee, referred to as USER, has specific obligations regarding customer disputes and claims. The franchisee must immediately notify All Team of all customer returns, allowances, and disputes. Furthermore, the franchisee is responsible for adjusting all disputes at their own expense, which includes promptly issuing credit memoranda to resolve these issues.
This means that if a customer has a problem with the services provided by the All Team franchisee, such as dissatisfaction with a temporary employee, the franchisee is responsible for resolving the issue financially. This could involve providing a refund, discount, or other form of compensation to the customer to settle the dispute. The franchisee bears the financial burden of these adjustments.
All Team retains the right to adjust disputes directly with the customer and charge back the franchisee for the uncollected amount of the account receivable. This implies that All Team can intervene in customer disputes if they deem it necessary, and the franchisee will ultimately be responsible for covering the financial impact. This arrangement ensures that customer disputes are addressed promptly, but it also places the financial responsibility for resolving these disputes on the franchisee.