Is an individual whose compensation is paid by an All Team USER considered an employee of ATFC?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither USER nor any individual whose compensation for services is paid by USER in any way, directly or indirectly, expressly or by implication, shall be construed to be an employee of ATFC for any purpose, including, without limitation any tax or withholding requirements levied or fixed by any governmental law, rule or regulation is solely responsible for the day-to-operations of the Business.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, individuals compensated by an All Team USER (franchisee) are not considered employees of ATFC (the franchisor). The agreement explicitly states that neither the USER nor any individual paid by the USER will be construed as an employee of ATFC for any purpose. This includes, but is not limited to, tax or withholding requirements imposed by governmental laws, rules, or regulations. The USER is solely responsible for the day-to-day operations of the business.
This distinction is crucial because it clarifies that All Team franchisees are independent contractors, not employees of the franchisor. As such, they are responsible for managing their own employees and ensuring compliance with all applicable labor laws and tax obligations. All Team franchisees are responsible for handling all worker's compensation insurance premiums with respect to USER's temporary employees to whom Wages have been paid.
This arrangement protects All Team from potential liabilities associated with the USER's employees, such as employment-related claims or tax obligations. It also reinforces the franchisee's autonomy in managing their business operations. Prospective franchisees should understand this independent contractor relationship and its implications for their responsibilities as employers.