What is the nature of the businesses that All Team franchises?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
For the years ended December 31, 2024 and 2023
NOTE 1 – BACKGROUND INFORMATION
The Company is engaged in franchising businesses that provide temporary employment services and management placement throughout the United States.
The Company was formed June 18, 1986 in the State of Missouri and commenced activities on July 1, 1986.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenue Recognition
The Company maintains its books and prepares its financial statements on the accrual basis of accounting wherein revenue is recognized when earned and invoiced and expenses are recognized when incurred. Furthermore, initial franchise fee income is earned upon execution of the franchise agreement, which is nonrefundable. The Company receives royalties based upon a percentage of annual sales volume of its affiliates and franchisees. Additionally, funding and processing fees are based on a percentage of gross billings.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 33)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the company franchises businesses that provide temporary employment services and management placement throughout the United States. All Team was formed on June 18, 1986, in the State of Missouri and commenced activities on July 1, 1986.
All Team recognizes revenue when services are provided, there is persuasive evidence of an arrangement, the price is fixed, and collection is reasonably assured. Initial franchise fee income is earned upon the execution of the franchise agreement and is nonrefundable. All Team also receives royalties based on a percentage of the annual sales volume of its affiliates and franchisees, as well as funding and processing fees based on a percentage of gross billings.
For a prospective franchisee, this means that All Team franchisees operate in the staffing and management placement industry. Revenue for franchisees is generated through providing temporary employment services and placing candidates in management positions. Franchisees pay an initial fee that is nonrefundable and ongoing royalties and fees based on sales and billings.