How often can All Team change the payroll processing fee?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchise Agreement.
Note 2 – Processing Fee. You are required to use an approved supplier for payroll processing. Currently we are the only approved payroll and billing processing source for our franchisees. Attached as Exhibit B is a copy of the Processing Agreement you must sign in order to obtain payroll processing from us. We have the right to increase the fees based on changes in our costs to provide such services. The Processing Fee is subject to change upon written notification to you, however we will not change it more often than once a year. If you fail to timely provide all invoices and timecards to us, you must pay us a fine of $1,000 for the first violation, $2,500 for the second violation, and $5,000 for the third and each s
Source: Item 6 — OTHER FEES\ (FDD pages 10–13)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the payroll processing fee can be changed, but not more than once per year. The FDD specifies that All Team has the right to increase the fees based on changes in their costs to provide such services. However, franchisees will receive written notification before any change takes effect.
This is important for prospective franchisees to understand because it impacts their operating costs. While the processing fee is subject to change, the annual limit on changes provides some predictability. Franchisees should factor in potential increases when budgeting and forecasting their financial performance. It is also important to note that All Team is currently the only approved payroll and billing processing source for its franchisees.
In addition to the processing fee, franchisees may incur fines for failing to provide invoices and timecards in a timely manner. These fines are $1,000 for the first violation, $2,500 for the second, and $5,000 for the third and subsequent violations. Franchisees should ensure they have systems in place to meet the required deadlines to avoid these penalties. The processing fee itself is 1.65% of Temporary Employment Gross Billings, with a separate charge for the Statement of Wages Fee (W-2) based on All Team's actual costs and expenses.