When is an All Team franchisee responsible for providing a replacement candidate or refunding a portion of the placement fee to another All Team agency?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
Likewise, if another ATFC agency filled the job order with the assistance of the FRANCHISEE and the Placement Customer requires a replacement, FRANCHISEE will be responsible for providing a replacement Candidate or immediately refunding its portion of the Placement Fee back to the other ATFC agency. Notwithstanding the foregoing, ATFC is not responsible for the amount of the Placement Fee which is being refunded to the ATFC agency or to the FRANCHISEE, as the case may be, for failure to obtain a replacement Candidate.
If any disputes arise as to the sharing of any placement fees, a determination shall be made by ATFC and such determination shall be binding on the parties. ATFC is not responsible for payments due to FRANCHISEE of its share of any placements, unless the placement is made of a Candidate who was placed by ATFC with the assistance of FRANCHISEE.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, an All Team franchisee has specific responsibilities regarding replacement candidates and placement fees when collaborating with other All Team agencies. If an All Team franchisee assists another All Team agency in filling a job order and the placement customer requires a replacement, the franchisee is responsible for providing a replacement candidate or immediately refunding their portion of the placement fee back to the other All Team agency. This ensures that the client's needs are met and that financial responsibility is appropriately allocated between the agencies involved.
Conversely, if another All Team agency assists the franchisee in placing a candidate, that agency is primarily responsible for providing a replacement if needed. However, if that agency cannot provide a replacement, it must refund its portion of the placement fee to the franchisee. The franchisee then assumes the responsibility of finding a replacement candidate. This system ensures that one of the All Team agencies is always accountable for fulfilling the placement guarantee.
All Team is not responsible for the amount of the placement fee being refunded to either the All Team agency or the franchisee for failure to obtain a replacement candidate. Any disputes regarding the sharing of placement fees will be determined by All Team, and such determination is binding on all parties involved. This process helps maintain fairness and consistency within the All Team franchise system, ensuring that all franchisees adhere to the established guidelines for candidate replacement and fee sharing.