Does the All Team Processing Agreement specify any requirements for the All Team USER to maintain insurance coverage other than worker's compensation?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
USER shall operate the Business in full compliance with all applicable governmental laws, rules and regulations and in full compliance with the Franchise Agreement. In addition, USER shall carry worker's compensation insurance for all employees and comply with all laws and regulations related thereto, and shall provide proof of such insurance, together with proof of payment for such insurance, to ATFC as requested from time to time.
B. Books and Records.
USER shall keep at its offices, for a period of seven years after their creation, all payroll and personnel records for its temporary personnel employees and all other books of account and business records customary for the industry, which shall be available for inspection by ATFC and its representatives during normal business hours.
USER shall maintain such records as ATFC may reasonably request from time to time, on forms approved in writing by ATFC.
USER shall promptly furnish to ATFC in writing, all necessary payroll information regarding USER's temporary employees, including without limitation Wages, rates, names of payees, Direct Payroll Costs, billing information regarding USER's Customers and all information required to be compliant with National/Regional Accounts in the form required by ATFC.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the Processing Agreement outlines specific insurance requirements for franchisees. While it explicitly mandates worker's compensation insurance, it also references other insurance premiums related to payroll.
The agreement states that "Direct Payroll Costs" include various taxes and contributions, along with "any insurance premium based upon payrolls (other than worker's compensation insurance premiums) which is a legal obligation of an employer to pay with respect to Wages on Temporary Employment Gross Billings derived from the placement of temporary personnel employees." This indicates that franchisees are responsible for any legally required payroll-based insurance premiums, excluding worker's compensation.
Furthermore, the agreement requires All Team franchisees to operate their business in full compliance with all applicable governmental laws, rules, and regulations, as well as the Franchise Agreement. This includes carrying worker's compensation insurance and providing proof of such insurance and payment to ATFC when requested. Therefore, franchisees must ensure they meet all legal and contractual insurance obligations beyond just worker's compensation, as these costs are part of their operational responsibilities.