Is All Team permitted to use Advertising Fund contributions to solicit the sale of franchises?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right to reinstate the National Advertising Fund ("Advertising Fund") at some future date. The purpose of the Advertising Fund is brand recognition and acceptance of the Marks for the benefit of our franchisees. We will administer the Advertising Fund. Your contribution, on a monthly basis, is to pay an Advertising Fee of 1% of Temporary Employment Gross Billings and 2% of Permanent Placement Gross Billings to the Advertising Fund. The Advertising Fee may be used for production costs, administration, website maintenance and design, membership in industry associations, and media placement costs. These funds may be used for advertising on television, radio, direct marketing mailings, the newspaper, the Internet and other media. We have the right to determine the type of advertising and the media in which it will appear. The Advertising Fund is not, and will not be, an asset of ours. Our affiliates, if any, will contribute the same percentage for each Agency that it or its affiliates operate. We do not use any money you contribute to the Advertising Fund that is principally a solicitation for the sale of franchises.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 18–23)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the company is not permitted to use advertising fund contributions to solicit the sale of franchises. The document states that All Team reserves the right to reinstate the National Advertising Fund at a future date, with the purpose of brand recognition and acceptance of the marks for the benefit of franchisees.
The franchisee's contribution to the Advertising Fund is a monthly Advertising Fee of 1% of Temporary Employment Gross Billings and 2% of Permanent Placement Gross Billings. These fees are intended for production costs, administration, website maintenance and design, membership in industry associations, and media placement costs, including advertising on television, radio, direct marketing mailings, newspapers, and the Internet.
The FDD explicitly states that All Team will not use any money contributed to the Advertising Fund for purposes principally related to soliciting the sale of franchises. This provides assurance to franchisees that their contributions will be used to promote the All Team brand and support the existing franchise network, rather than for franchise recruitment efforts.