What is the All Team franchisee's responsibility regarding compliance with federal, state, municipal, and local laws?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
At all times FRANCHISEE shall comply with all federal, state, municipal, and local laws, rules, regulations, ordinances, and codes applicable and related to this Agreement, the Agency, and all aspects of the conduct of 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.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, franchisees are responsible for complying with all applicable federal, state, municipal, and local laws, rules, regulations, ordinances, and codes related to the franchise agreement, the agency, and all aspects of the agency's operations. This includes obtaining all necessary licenses and permits required by these laws and regulations. Franchisees must also ensure timely filing of all tax returns and payment of all taxes levied or assessed in connection with the agreement and the agency.
The FDD emphasizes that All Team is not required to inform franchisees of any federal, state, municipal, or local law, rule, regulation, ordinance, code, or tax. Franchisees are solely responsible for understanding and adhering to the requirements of the Americans with Disabilities Act (ADA). The agreement specifies that nothing within it or the Confidential Operation Manual imposes any obligation on All Team regarding ADA compliance.
Furthermore, franchisees must represent that they have investigated and ascertained the laws and regulations specific to the franchised activities that affect the agency. This includes understanding the regulations governing employment agencies and recruiting services, as many states regulate these activities. The franchisee's compliance with these laws is a fundamental aspect of operating an All Team franchise, and failure to comply could result in legal and financial repercussions for the franchisee.
In essence, All Team places the onus of legal and regulatory compliance squarely on the franchisee. This is a common practice in franchising, as franchisees are typically the ones directly operating the business and interacting with local regulations. Prospective franchisees should carefully research and understand the legal landscape in their area before investing in an All Team franchise.