What happens if an All Team franchisee develops an account that qualifies as a National/Regional Account?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
of business combination, as the case may be, will have the right to continue the operation of such office in the Area as a company owned or franchised office under the trade name utilized by the acquired or acquiring business for such office before the acquisition, or under the Marks. C. "National/Regional" Accounts. ATFC may develop National/Regional Accounts from time to time and FRANCHISEE may develop accounts that may qualify as a National/Regional Account. National/Regional Accounts obtained by FRANCHISEE for service outside FRANCHISEE's Area must be referred to ATFC and shall be treated as a National/Regional Account; however, ATFC reserves the right to reject any such account in ATFC's sole judgment and discretion. All National/Regional Accounts shall be deemed to be the property of ATFC and FRANCHISEE shall have no claim to same. As such, National/Regional Accounts and related agreements shall be negotiated, managed, and controlled solely by ATFC or its affiliates, even if the National/Regional Account was procured by FRANCHISEE. Any information supplied to ATFC by FRANCHISEE regarding National/Regional Accounts, and supplemental information as may be required by ATFC may be disseminated to all franchisees that may be required to service those accounts. FRANCHISEE agrees that providing account information to other franchisees is in the best interest of the Systems as a whole and for enhancement of opportunities of all within the Systems.
If one or more locations of a National/Regional Account fall within FRANCHISEE's Area, ATFC will first offer FRANCHISEE the opportunity to provide such services for said locations on the terms and conditions that it has established with such National/Regional Account. FRANCHISE is not required to service a National/Regional Account and if FRANCHISEE fails to accept such offer in the manner and within the time period that ATFC specifies, ATFC has the right to service the account itself, or may authorize other franchisees, or affiliate-owned or licensee-owned agencies, to provide such services. Notwithstanding the foregoing, even if the FRANCHISEE fails to accept the job order to service a certain National/Regional Account, the FRANCHISEE may fill subsequent job orders when FRANCHISEE has temporary staff or management candidates available. However, the decision to accept the FRANCHISEE as a provider of services for the National/Regional Account must ultimately rest with the National/Regional Account. All National/Regional Accounts will be billed by ATFC, and customer payments for all National/Regional Accounts will be collected by ATFC exclusively and forwarded to FRANCHISEE as applicable.
In order for FRANCHISEE to be permitted to service a National/Regional Account, FRANCHISEE must: (i) maintain the insurance required by the National/Regional Account customer, and add the National/Regional Account customer and All Team Franchise Corporation as additional insureds, (ii) agree to be bound by and comply with all of the terms and conditions of the National/Regional Account and perform all of the obligations contained in the agreement between ATFC and the National/Regional account customer to the extent within their operational control; (iii) comply with any and all audits required by the National/Regional account customer; and (iv) and sign any document required by the National/Regional account customer. Uniformity and quality of services offered by all ATFC agencies to National/Regional Accounts is of utmost importance to ATFC and the entire System. If FRANCHISEE violates the National/Regional Account requirements described herein and in the Manual, FRANCHISEE agrees that ATFC will be damaged. These damages will be calculated at $1,000 for the first violation, $2,500 for the second violation and $5,000 for the third violation. After the third violation, FRANCHISEE may no longer be permitted to service National/Regional Accounts. ATFC has the right to collect these amounts in addition to exercising any and all other rights it may have for non-compliance under this Agreement. FRANCHISEE agrees that a precise calculation of the full extent of the damages that ATFC will incur from the improper servicing of National/Regional Accounts are difficult to determine and all parties desire certainty in this matter and agree that the damages provided here are reasonable and constitute liquidated damages and not a penalty.
**III.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, if a franchisee develops an account that qualifies as a National/Regional Account, the franchisee must refer the account to All Team. All Team retains the right to reject the account at its discretion. National/Regional Accounts are defined as temporary service and permanent placement business accounts with more than one location not solely within one franchisee's area, as determined by All Team. All National/Regional Accounts are deemed the property of All Team, and the franchisee has no claim to them. All Team manages and controls these accounts, even if the franchisee initially procured them.
If a National/Regional Account has locations within a franchisee's area, All Team will first offer the franchisee the opportunity to service those locations under the terms established with the National/Regional Account. The franchisee is not obligated to accept this offer. If the franchisee declines or fails to accept the offer within the specified time, All Team can service the account directly or authorize other franchisees, affiliate-owned, or licensee-owned agencies to provide the services. However, the National/Regional Account ultimately decides who provides the services, even if the franchisee initially declined.
Franchisees servicing National/Regional Accounts must maintain the required insurance, include the National/Regional Account customer and All Team as additional insureds, comply with the terms of the agreement between All Team and the customer, adhere to all audits, and sign required documents. Uniformity and quality of service are critical, and violations of these requirements can result in damages: $1,000 for the first violation, $2,500 for the second, and $5,000 for the third. After three violations, the franchisee may lose the right to service National/Regional Accounts. All Team will bill National/Regional Accounts and collect payments, forwarding applicable amounts to the franchisee.