What is the guarantee period in All Team placement agreements designed to address?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
You must provide for a guarantee period in your 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 you and another All Team agency, the All Team agency that supplied the Candidate will be responsible for providing a replacement to the Placement Customer. If the All Team agency cannot supply a replacement Candidate, then it must refund the portion of the Placement Fee which it received back to you and you will be responsible for obtaining a replacement Candidate. Likewise, if another All Team agency filled the job order with your assistance and the Placement Customer requires a replacement, you will be responsible for providing a replacement Candidate or immediately refunding your portion of the Placement Fee back to the other All Team agency. However, in no event will we be responsible for the amount of the Placement Fee which is being refunded to the All Team agency or to you, as the case may be, for failure to obtain a replacement Candidate.
Source: Item 12 — TERRITORY (FDD pages 23–26)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the guarantee period in placement agreements is designed to address situations where a candidate is found to be unsatisfactory within a specified time after placement. This guarantee ensures that the All Team franchisee will provide a replacement candidate.
If the placement fee was split between two All Team agencies, the agency that originally supplied the candidate is responsible for finding a replacement. If that agency cannot provide a suitable replacement, it must refund its portion of the placement fee to the other agency, which then becomes responsible for securing a replacement candidate.
Conversely, if another All Team agency assisted in filling the job order and a replacement is needed, the franchisee who initially filled the order is responsible for either providing a replacement candidate or refunding their portion of the placement fee to the assisting agency. However, All Team itself is not responsible for refunding any portion of the placement fee if a replacement candidate cannot be found. This system ensures accountability and continued service to the placement customer while also outlining the financial responsibilities between All Team agencies involved in the placement.