Does the Funding Agreement establish an employer-employee relationship between ATFC and an All Team franchisee?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
| This FUNDING AGREEMENT is made this day of, 20, by and between ALL TEAM FRANCHISE CORPORATION, INC., a Florida corporation ("ATFC"), and a corporation, limited |
|---|
| liability company or partnership ("USER"). |
| W I T N E S S E T H: |
| WHEREAS, USER has entered into a temporary service business pursuant to a Franchise |
| Agreement with ATFC on 20 ("Franchise Agreement"); and |
| WHEREAS, ATFC and USER are entering into a Processing Agreement on even date herewith in |
| order to allow ATFC to provide certain billing and payroll processing to USER for their temporary |
| employees and possibly their administrative staff ("Processing Agreement"); |
| WHEREAS, ATFC is willing to provide financing for USER's temporary service businesses and |
| USER desires to utilize the funding for the operation of its temporary service businesses, according to the |
| terms, covenants and conditions contained herein; and |
| NOW THEREFORE, in consideration of the above premises and other good and valuable |
| consideration, the receipt and legal sufficiency of which are hereby acknowledged, ATFC and USER agree |
| as follows: |
| I. |
| Definitions. As used in this Funding Agreement the words and terms listed below shall have the |
| following meanings: |
| A. |
| Capitalized terms used herein and defined in the Franchise Agreement shall have the |
| meanings set forth in the Franchise Agreement when used herein unless otherwise defined herein or unless |
| the context otherwise requires. |
| B. |
| "Centennial Agreement" means the funding agreement between Centennial Bank, or any |
| successor or assign ("Centennial") and ATFC, which is incorporated herein by reference. |
| C. |
| "Business" means the temporary personnel service business operated by USER pursuant |
| to the Franchise Agreement. |
| D. |
| "Business Location" means any location(s) at which USER conducts the Business. |
| E. |
| "Customers" mean patrons of the Business who utilize USER's temporary personnel |
| services. |
| F. |
| "Dispute" means any dispute or claim by the Customer in whole or in part as to price, |
| terms, offsets, count claims, contra accounts or any other defense of any other kind and character, real or |
| claimed which are not shown on the face of the invoice. |
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the Funding Agreement outlines the terms and conditions under which All Team Franchise Corporation (ATFC) provides financing to the franchisee (referred to as USER) for their temporary service business. The agreement explicitly states that the franchisee, as the USER, operates the temporary personnel service business. Furthermore, the franchisee is responsible for carrying worker's compensation insurance for all employees. ATFC acts as an attorney-in-fact for the franchisee to perform services specified in the Funding Agreement. The franchisee sells and assigns customer invoices to ATFC, granting ATFC rights to those invoices.
The Funding Agreement details the financial relationship, including ATFC's right to withhold fees such as Technology Fees, Continuing License Fees, and Advertising Fees from the Temporary Employment Gross Billings collected on behalf of the franchisee. The agreement also specifies that the franchisee will be charged interest on late payments. ATFC has the right to access data and statistical information processed by the franchisee. The franchisee is required to use specific computer hardware and software provided by ATFC.
The document emphasizes the franchisee's responsibility for compliance with laws and regulations, including worker's compensation insurance. The franchisee must maintain payroll and personnel records for temporary personnel employees. The agreement includes a guarantee section where an individual personally guarantees the franchisee's obligations under the Funding Agreement.
While ATFC provides funding and processes payments, the franchisee retains responsibility for operating the business, managing employees, and complying with legal requirements. The Funding Agreement does not establish an employer-employee relationship between ATFC and the All Team franchisee; rather, it defines a financial and service-based relationship between the two parties.