In All Team placement agreements, what must franchisees provide regarding candidate satisfaction?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
You must provide for a guarantee period in your placement agreements whereby a replacement Candidate will be provided if the original Candidate is not found to be satisfactory within a specified period of time. If the Placement Fee was split between you and another All Team agency, the All Team agency that supplied the Candidate will be responsible for providing a replacement to the Placement Customer. If the All Team agency cannot supply a replacement Candidate, then it must refund the portion of the Placement Fee which it received back to you and you will be responsible for obtaining a replacement Candidate. Likewise, if another All Team agency filled the job order with your assistance and the Placement Customer requires a replacement, you will be responsible for providing a replacement Candidate or immediately refunding your portion of the Placement Fee back to the other All Team agency. However, in no event will we be responsible for the amount of the Placement Fee which is being refunded to the All Team agency or to you, as the case may be, for failure to obtain a replacement Candidate.
Source: Item 12 — TERRITORY (FDD pages 23–26)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, franchisees must provide a guarantee period in their placement agreements. This guarantee ensures that if a candidate is not satisfactory within a specified time, a replacement candidate will be provided.
If the placement fee was split between two All Team agencies, the agency that supplied the original candidate is responsible for finding the replacement. If the original agency cannot provide a replacement, it must refund its portion of the placement fee to the other agency, which then becomes responsible for finding a replacement candidate.
However, All Team itself is not responsible for refunding any portion of the placement fee if a replacement candidate cannot be found. This arrangement highlights the importance of candidate selection and the potential financial responsibility that franchisees bear in ensuring client satisfaction. Franchisees should carefully consider these obligations and the potential costs associated with providing replacement candidates or refunding fees when entering into placement agreements.