What is the All Team franchisee's obligation regarding a guarantee period in placement agreements?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE must provide for a guarantee period in its placement agreements whereby a replacement Candidate will be provided if the original Candidate is not found to be satisfactory within a specified period of time. If the Placement Fee was split between the FRANCHISEE and another ATFC agency, said ATFC agency that supplied the Candidate shall have the responsibility of providing a replacement to the Placement Customer. If said ATFC agency cannot supply a replacement Candidate, then it must refund the portion of the Placement Fee which it received back to the FRANCHISEE and FRANCHISEE shall be responsible for obtaining a replacement Candidate. 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, franchisees must provide a guarantee period in their placement agreements. This means that if a candidate placed by the franchisee is not satisfactory within a specified time, a replacement candidate must be provided.
If the placement fee was split with another All Team agency that supplied the candidate, that agency is responsible for providing the replacement. If the supplying agency cannot provide a replacement, it must refund its portion of the placement fee to the franchisee, who then becomes responsible for finding a replacement. Conversely, if another All Team agency filled the job order with the franchisee's assistance and a replacement is needed, the franchisee is responsible for providing the replacement or refunding their portion of the placement fee to the other agency.
It is important to note that All Team is not responsible for the amount of the placement fee refunded to either the agency or the franchisee if a replacement candidate cannot be obtained. Any disputes regarding the sharing of placement fees will be determined by All Team, and such decisions are binding. All Team is not responsible for ensuring the franchisee receives their share of placement fees, unless the candidate was placed by All Team with the franchisee's assistance.