What is an All Team franchisee required to do regarding the investigation of laws and regulations?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
the Agency. 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. FRANCHISEE shall make timely filings of all tax returns and shall pay when due all taxes levied or assessed on, and related to this Agreement and the Agency. At no time is ATFC required to inform FRANCHISEE of any federal, state, municipal, or local law, rule, regulation, ordinance code, or tax. FRANCHISEE is solely responsible for complying with the requirements of the Americans with Disabilities Act ("ADA") in all respects, and nothing contained herein or in the Confidential Operation Manual shall be construed as or implied as imposing any obligation on ATFC or its affiliates in relation to the ADA. The execution and performance of this Agreement by FRANCHISEE does not violate or constitute a breach of the terms of any other agreement or commitment to which FRANCHISEE is a party.
FRANCHISEE shall provide all services ATFC requires pursuant to the Confidential Operations Manual or as otherwise direct.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, franchisees must investigate and understand the laws and regulations specific to their agency's activities. This includes federal, state, municipal, and local laws and regulations. Franchisees also represent that they are aware of and understand all applicable laws relating to the licensing and operation of an employment agency and placement firm in their area, as well as all applicable requirements relating to the employment of union members.
This requirement means that prospective All Team franchisees need to conduct thorough due diligence to identify all relevant legal and regulatory obligations before starting operations. This investigation could involve consulting with legal counsel, researching applicable statutes and regulations, and contacting relevant government agencies. Franchisees must also obtain all necessary licenses and permits required by these laws and regulations.
All Team does not inform the franchisee of any federal, state, municipal, or local law, rule, regulation, ordinance code, or tax. Franchisees are solely responsible for complying with the Americans with Disabilities Act (ADA). Franchisees must also make timely filings of all tax returns and pay all taxes related to the franchise agreement and the agency. Failing to comply with these laws and regulations could result in fines, penalties, or legal action, which could negatively impact the franchisee's business and reputation.
This requirement is typical in franchising, as franchisees are generally responsible for ensuring their businesses comply with all applicable laws. However, the extent of the investigation required may vary depending on the specific industry and location. Prospective All Team franchisees should carefully consider the time and expense involved in conducting this due diligence and factor it into their overall investment decision.