Does the All Team franchisee's control over day-to-day operations include setting employment conditions for its employees?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
ENTS OR SUBSIDIARIES RELATED TO ANY AND ALL CLAIMS RELATING TO OR ARISING FROM THIS AGREEMENT OR THE FRANCHISE RELATIONSHIP SET FORTH IN THIS AGREEMENT SHALL BE COLLECTIVELY LIMITED TO THE AMOUNT FRANCHISEE PAID TO ATFC WITHIN THE PRIOR 12 MONTHS IMMEDIATELY BEFORE WRITTEN NOTICE OF ANY PROPER CLAIM IS RECEIVED BY ATFC.
- T. Day-to-Day Control. FRANCHISEE has the sole right and responsibility for the manner and means by which the day-to-day operation of the Agency is determined and conducted and for achieving its business objectives. Subject to any approval, inspection and enforcement rights reserved to ATFC, this right and responsibility includes the employment, supervision, setting the conditions of employment and discharge for its employees at the Agency, daily maintenance, safety concerns, and the achievement of conformity with the System.
- U. Attorneys' Fees.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, franchisees have significant control over the day-to-day operations of their agencies, including setting employment conditions for their employees. The franchisee has the right and responsibility for determining and conducting the agency's daily operations and achieving its business objectives. This encompasses employment, supervision, setting employment conditions, and employee discharge, subject to All Team Franchise Corporation's (ATFC) approval, inspection, and enforcement rights. This indicates that while franchisees have autonomy in managing their staff, they must still adhere to the overall standards and requirements of the All Team system.
This level of control allows All Team franchisees to tailor their employment practices to local market conditions and individual agency needs. Franchisees are responsible for all employment decisions, including hiring, firing, training, wage and hour requirements, recordkeeping, supervision, and employee discipline. They must also inform their employees of these requirements. This responsibility ensures that franchisees can build and manage their teams effectively, fostering a positive and productive work environment.
However, franchisees must also comply with ATFC's mandatory policies, practices, procedures, regulations, and standards, as outlined in the Confidential Operating Manual or other materials provided by ATFC. While local business conditions may suggest modifications to certain policies and procedures, these changes require written consent from ATFC, which may be denied at ATFC's discretion. This balance between franchisee autonomy and franchisor oversight is typical in franchising, aiming to maintain brand consistency while allowing for local adaptation. Franchisees must also ensure their employees treat customers and candidates fairly, providing services in an honest, ethical, and nondiscriminatory manner, further emphasizing the importance of ethical business practices within the All Team franchise system.