Who prescribes the wages for the franchisee's administrative employees when All Team processes payroll?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- Administrative Payroll. If USER elects, at no additional charge to USER, ATFC will process the payroll for USER's administrative employees from USER'S account, based on the Wages as prescribed by USER after deducting and withholding there from an amount equal to all income, social security and other taxes, disability payments and deductions (except worker's compensation insurance premiums) which may be required by applicable law to be deducted and withheld as directed by USER. Further, ATFC will pay on behalf of USER, from USER'S account, based on Wages processed by ATFC pursuant to this Processing Agreement, all Direct Payroll Costs, which payments shall be made directly to the entities entitled to the receipt thereof, including any penalties due to late filing or error in calculating tax due, except to the extent attributable to any action or inaction of USER. The use of Pay Cards is highly recommended where allowed by law. However, payroll checks may be either printed in USER'S office (on printer approved by ATFC) or in ATFC's office and sent overnight to USER at USER's expense. ATFC will advise USER of the administrative payroll costs via electronic mail after payroll has been processed.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, if a franchisee (referred to as USER) elects to have All Team Franchise Corporation (ATFC) process payroll for their administrative employees, the wages are prescribed by the franchisee (USER). All Team processes the payroll from the franchisee's account based on these wages. The franchisee is responsible for deducting and withholding all required income, social security, and other taxes, disability payments, and deductions as directed by them and required by law.
All Team then pays on behalf of the franchisee from the franchisee's account all direct payroll costs based on the wages processed by All Team. These payments are made directly to the entities entitled to receive them, including any penalties for late filing or errors in calculating tax, unless the penalties are due to the franchisee's actions or inaction. The FDD recommends the use of pay cards where allowed by law, but payroll checks can be printed in the franchisee's office (on an All Team-approved printer) or in All Team's office and sent overnight to the franchisee at the franchisee's expense. All Team will notify the franchisee of the administrative payroll costs via electronic mail after payroll has been processed.
This arrangement places the responsibility for wage levels and accurate reporting on the franchisee, while All Team handles the processing and payments. This division of responsibilities is common in franchise systems where the franchisee manages the local operation and the franchisor provides support services. The franchisee must ensure they have adequate funds in their account for All Team to make the payments, as any shortage of funds will be considered a material default under the agreement.