What is the All Team franchisee's responsibility regarding tax filings and payments?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
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 agrees to indemnify and/or reimburse ATFC and its affiliates for all capital, gross receipts, sales, and other taxes and assessments imposed by any applicable state or local governmental authority as a result of the conduct of the Agency's business or the license of any of ATFC's or its affiliates' intangible property to FRANCHISEE (whether required to be paid by ATFC or its affiliates, withheld by FRANCHISEE or otherwise).
FRANCHISEE's obligation to indemnify or reimburse ATFC or its affiliates for these taxes does not extend to income-type taxes which a state or local government imposes on ATFC or its affiliates' income
By each Wednesday at noon, weekly reports for all Temporary Employment Gross Billings for the preceding week, certified by an officer of FRANCHISEE.
Within forty-five (45) days after the end of each quarter, copies of 941 (or successor forms) tax forms that are required to be filed with the Internal Revenue Service.
All reports furnished hereunder shall be either prepared and certified by a professional accountant, or an independent certified public accountant, in accordance with generally acceptable accounting principles, consistently applied, and shall be certified to by FRANCHISEE as being true, complete and correct in all material respects and fairly presenting the financial condition and the results of operation of the Agency for the period covered thereby. Notwithstanding the foregoing, FRANCHISEE shall not be obligated to disclose confidential tax returns if such disclosure would violate applicable state law.
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 the timely filing of all tax returns and the payment of all taxes levied or assessed on the franchise agreement and the agency itself. All Team is not required to inform the franchisee of any federal, state, municipal, or local tax law. Franchisees must also provide All Team with copies of 941 tax forms (or successor forms) within 45 days after the end of each quarter, as required by the IRS.
Furthermore, the franchisee agrees to indemnify and/or reimburse All Team and its affiliates for all capital, gross receipts, sales, and other taxes and assessments imposed by any applicable state or local governmental authority as a result of the conduct of the Agency's business or the license of any of All Team's or its affiliates' intangible property to the franchisee. This includes taxes that All Team or its affiliates are required to pay or that the franchisee withholds. However, this indemnification does not extend to income-type taxes imposed on All Team or its affiliates' income.
In addition to these obligations, franchisees must submit weekly reports of all Temporary Employment Gross Billings each Wednesday by noon, certified by an officer of the franchisee. All reports furnished must be prepared and certified by a professional accountant or an independent certified public accountant, following generally accepted accounting principles. The franchisee must also certify that the reports are true, complete, and correct, fairly presenting the financial condition and results of the agency's operations. However, franchisees are not obligated to disclose confidential tax returns if such disclosure would violate applicable state law.