What is the nature of the All Team Permanent Placement Business?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
H. "Permanent Placement Business" is the permanent placement employment service business operated pursuant to this Agreement under the Marks and System.
L. "System" means a specially developed method of operating a temporary employment agency and permanent placement business providing services in the following industries: healthcare and environmental, hospitality and food service, management recruiting, labor and light industrial and administrative and clerical.
We offer franchises to operate an Agency to provide temporary employment services ("Temporary Service Business") and permanent placement services ("Permanent Placement Business") in the following industries: healthcare and environmental, hospitality and food service, management recruiting, labor and light industrial and administrative and clerical. The Temporary Service Business will provide temporary hourly personnel. The Permanent Placement Business will operate as a contract search firm which will typically make permanent placements.
You will operate the Agency providing both the Temporary Service Business and Permanent Placement Business from one office. When you begin operation of the Agency, you can start by only providing the Temporary Service Business. However, you must begin operating the Permanent Placement Business within 4 months after you sign the Franchise Agreement.
FRANCHISEE must operate the Permanent Placement Business within the Area out of the same office that the Temporary Service Business is operated. FRANCHISEE's Agency shall provide only the placement services set forth in the Confidential Operations Manual. FRANCHISEE's customers for Permanent Placement Business ("Placement Customers") are those seeking to hire permanent personnel ("Candidates").
Generally, your Placement Customers will be located within your Area. However, you may service Placement Customers and Candidates from anywhere within or outside of your Area except for the following restriction: If you obtain a request to fill a position ("job order") outside of your Area, you must first offer the agency (i.e. an agency operated by any of our affiliates or other franchisees or licensees) that operates in that location the opportunity to fill that job order. If the customer request is not referred to the agency office that operates in that location, you will be charged a fine of $1,000 for the first violation, $2,500 for the second violation and $5,000 for the third and each subsequent violation. In addition, you will be required to pay restitution of the profit you derived from the wrongfully-performed services to the agency that services that area, as applicable.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–9)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the Permanent Placement Business involves operating a permanent placement employment service under the All Team marks and system. This business functions as a contract search firm, focusing on making permanent placements within industries such as healthcare, hospitality, and administration.
Franchisees are required to operate the Permanent Placement Business within their designated area from the same office as their Temporary Service Business. While franchisees can initially focus on the Temporary Service Business, they must commence Permanent Placement Business operations within four months of signing the Franchise Agreement. The services provided must align with the guidelines outlined in All Team's Confidential Operations Manual.
All Team franchisees cater to 'Placement Customers,' which are entities looking to hire permanent personnel, referred to as 'Candidates'. While franchisees generally service customers within their area, they may also serve customers and candidates from outside their area, with certain restrictions. Specifically, if a job order originates outside the franchisee's area, they must first offer the opportunity to fulfill the order to the All Team agency operating in that location. Failure to do so can result in fines ranging from $1,000 for the first violation to $5,000 for the third and subsequent violations, along with restitution of profits derived from the improperly performed services.