Where must the All Team franchisee operate the Placement Business?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
such additional training.
ITEM 12. TERRITORY
You are granted the right to conduct your Agency throughout a designated "Area" described in Exhibit I of your Franchise Agreement, which will consist of a Metropolitan Statistical Area ("MSA") as defined by the US government. You must operate the Agency at an office located within the limits or boundaries of the Area. You have the right to select the site of the office for the Agency but we must approve the location. If you want to change the location of your office you must obtain our written consent first, which we may withhold in our sole discretion. Such requests are evaluated on a case-by-case basis, including consideration of whether you are currently in compliance with your Franchise Agreement, territory availability, and other fact-specific considerations..
Except for National/Regional Accounts described below, we agree that during the term of the Franchise Agreement, so long as you are not in default under the Franchise Agreement, we will not operate or license any other person or entity to operate an Agency located within the Area. We and our affiliates have the absolute right to establish company-owned, affiliate-owned or franchised or licensed outlets or any other operation using the System and Marks at any location outside of the Area. We and our affiliates have the absolute right to establish company-owned, affiliate-owned or franchised or licensed outlets which do not use the System or Marks anywhere we desire, including within the Area. We and our affiliates may also market products, including products with the Marks, through alternative channels of distributions and engage in other business activities at any location without obligation to its franchisees. We are not required to pay you if we or our affiliates exercise any of the rights specified above. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own or from other channels of distribution or competitive brands that we control.
We have not established and do not operate, and have not formulated any plans or policies to establish or operate or to franchise others to operate, any business offering services similar to or competitive with those to be offered for sale by franchisees of your Agency under different trade names or trademarks, or of selling other services or products utilizing the Marks, but we retain the right to do so.
You may not conduct or direct marketing activities, or otherwise solicit new customers or candidates, outside the Area without our prior written consent, which may be given, withheld, conditioned, or withdrawn 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.
Source: Item 12 — TERRITORY (FDD pages 23–26)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the franchisee must operate the Placement Business within their designated Area. This Area is defined in Exhibit I of the Franchise Agreement and typically consists of a Metropolitan Statistical Area (MSA) as defined by the U.S. government. The All Team franchisee must operate the Placement Business out of the same office(s) where the Temporary Service Business is operated. The franchisee has the right to select the site of the office, but All Team must approve the location. If the franchisee wants to change the location of their office, they must obtain All Team's written consent, which may be withheld at All Team's discretion.
While the Placement Customers will generally be located within the franchisee's Area, the franchisee may service Placement Customers and Candidates from anywhere within or outside of their Area with one exception. If the franchisee gets a request to fill a position outside of their Area, they must first offer the opportunity to fill the job order to the All Team agency that operates in that location. If the customer request is not referred to the agency office that operates in that location, the 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. In addition, the franchisee will be required to pay restitution of the profit they derived from the wrongfully-performed services to the agency that services that area, as applicable. If that All Team Agency cannot or waives their right to fill the job order, in writing, the franchisee may fill it.
It is important to note that All Team retains the right to operate or license other agencies outside the franchisee's Area. The franchisee does not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other channels of distribution. Additionally, All Team and its affiliates can engage in business within the franchisee's Area for National/Regional Accounts, which are accounts with more than one location covered by an agreement for services not solely within one franchisee's area. If a franchisee obtains a National/Regional Account, they must refer it to All Team, though All Team reserves the right to reject it.
If the Placement Fee was split between the franchisee and another All Team agency, the All Team agency that supplied the Candidate will be responsible for providing a replacement to the Placement Customer. If the All Team agency cannot supply a replacement Candidate, then it must refund the portion of the Placement Fee which it received back to the franchisee and the franchisee will be responsible for obtaining a replacement Candidate. Likewise, if another All Team agency filled the job order with the franchisee's assistance and the Placement Customer requires a replacement, the franchisee will be responsible for providing a replacement Candidate or immediately refunding their portion of the Placement Fee back to the other All Team agency. However, in no event will All Team be responsible for the amount of the Placement Fee which is being refunded to the All Team agency or to the franchisee, as the case may be, for failure to obtain a replacement Candidate.