Is an All Team franchisee required to use ATFC for billing and payroll services?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
ll documentation, training manuals, and supplemental computer hardware. ATFC will train USER to facilitate the use of the computer program. Said computer program is designed for "front office" operations in the temporary staffing business, including payroll processing and client billing.
- H. "Wages" means the salaries or wages earned by USER's temporary personnel employees for work performed for Customers.
II. Basic Agreement.
- A. Services. USER agrees to exclusively utilize ATFC for certain processing services, including billing to clients, and payroll for USER's temporary personnel employees based on the information provided by USER which will be entered into the required Software by USER. Provided USER is not in default hereunder and under the Franchise Agreement, ATFC agrees to render the services set indicated below for USER's Business in the manner specified in this Processing Agreement ("Services").
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- Paychecks. ATFC will prepare weekly, the payroll run for each temporary personnel employee utilized by a Customer, from USER's account, based on the Wages reported by USER after deducting and withholding thereof an amount equal to all income, social security and other taxes, disability payments and other deductions (except worker's compensation insurance premiums) which may be required by applicable law to be deducted and withheld, as directed by USER. The use of Pay Cards is highly recommended where allowed by law.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, franchisees are required to use ATFC for specific processing services. The franchisee, referred to as USER, must exclusively utilize ATFC for billing clients and processing payroll for temporary personnel employees. This is based on the information provided by the franchisee, which is then entered into the required software.
ATFC will handle the weekly payroll for each temporary employee, deducting all necessary taxes and withholdings as directed by the franchisee. The franchisee must submit timecards or related reporting to ATFC weekly, no later than noon on Wednesday, based on the prior week. Failure to provide invoices and timecards in a timely manner will result in fines: $1,000 for the first violation, $2,500 for the second, and $5,000 for the third and each subsequent violation.
All Team also offers to process payroll for the franchisee's administrative employees at no additional charge. The franchisee is responsible for obtaining and maintaining the computer hardware and software that All Team requires to provide these services. The franchisee must also pay All Team a processing fee of 1.65% of the temporary employment gross billings from the prior week, due no later than Friday. This processing fee can be increased with written notice, but not more than once a year.