What processing services does All Team Franchise Company (ATFC) provide to All Team franchisees?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
ll documentation, training manuals, and supplemental computer hardware. ATFC will train USER to facilitate the use of the computer program. Said computer program is designed for "front office" operations in the temporary staffing business, including payroll processing and client billing.
- H. "Wages" means the salaries or wages earned by USER's temporary personnel employees for work performed for Customers.
II. Basic Agreement.
- A. Services. USER agrees to exclusively utilize ATFC for certain processing services, including billing to clients, and payroll for USER's temporary personnel employees based on the information provided by USER which will be entered into the required Software by USER. Provided USER is not in default hereunder and under the Franchise Agreement, ATFC agrees to render the services set indicated below for USER's Business in the manner specified in this Processing Agreement ("Services").
-
- Paychecks. ATFC will prepare weekly, the payroll run for each temporary personnel employee utilized by a Customer, from USER's account, based on the Wages reported by USER after deducting and withholding thereof an amount equal to all income, social security and other taxes, disability payments and other deductions (except worker's compensation insurance premiums) which may be required by applicable law to be deducted and withheld, as directed by 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 a printer approved by ATFC), or in ATFC's office and sent overnight to USER at USER's expense. In order for ATFC to provide this service, USER must submit timecards, or related reporting, to ATFC weekly no later than noon on Wednesday based on the prior week. These timecards will then be matched up with each invoice by USER, saved electronically in a location designated by ATFC for future reference, and included with the invoice which will be sent to the Customer, if applicable. Failure to timely provide all invoices and timecards will result in a fine of $1,000 for the first violation, $2,500 for the second violation, and $5,000 for the third and each subsequent violation. Postage will be at the expense of USER.
-
- Direct Payroll Costs. ATFC will prepare, on behalf of USER with respect to the Wages paid pursuant to this Processing Agreement, all Direct Payroll Costs, from USER's account 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 ATFC.
-
- Garnishment or Wage Withholding. ATFC will provide a report of any amounts required in relation to a garnishment or wage withholding on any temporary personnel employee utilized by USER (or any administrative personnel if USER has chosen to have ATFC provide payroll services to them); USER shall be responsible for entering any such garnishments into the software program before payroll is processed. Further, USER will be responsible to make the required payments to the proper authority as required in the withholding order.
-
- Payroll Taxes and Reports. USER will execute IRS Form 2848 to grant ATFC the authority to file state and federal payroll taxes on USER's behalf. ATFC will prepare payroll tax deposits and quarterly tax reports for all federal and state jurisdictions on behalf of USER. ATFC will also file the payroll tax deposits and quarterly tax reports on behalf of USER with the appropriate taxing authority. Notwithstanding anything herein to the contrary, USER is solely responsible for payroll taxes and must have adequate funds available in USER's account for ATFC to make the payments. Any shortage of funds in USER's account will be deemed a material default under this Agreement. Annually, ATFC will send to USER for each temporary personnel employee (and if USER elects to utilize the services of USER's administrative employees, each administrative employee) processed by ATFC, a statement of Wages earned during the preceding calendar year, as well as a statement of the taxes and other amounts withheld and deducted therefrom. USER shall pay ATFC's costs and expenses in providing this service.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, All Team Franchise Company (ATFC) provides certain processing services to All Team franchisees, who are referred to as USER in the agreement. These services include billing clients and payroll processing for the franchisee's temporary personnel employees. The franchisee is responsible for entering the necessary information into the required software. ATFC also offers to process payroll for the franchisee's administrative employees, if the franchisee elects this service.
All Team will prepare the weekly payroll for each temporary personnel employee, using information provided by the franchisee. ATFC will deduct and withhold income, social security, and other taxes as required by law, as directed by the franchisee. The use of pay cards is highly recommended. Payroll checks can be printed in the franchisee's office, if the printer is approved by All Team, or at All Team's office and sent overnight to the franchisee at the franchisee's expense. Franchisees must submit timecards or related reporting to All Team by noon on Wednesday of each week based on the prior week. These timecards will be matched with each invoice, saved electronically, and included with the invoice sent to the customer, if applicable.
Franchisees are required to use ATFC exclusively for these processing services. Failure to provide invoices and timecards in a timely manner can result in fines: $1,000 for the first violation, $2,500 for the second, and $5,000 for the third and each subsequent violation. In addition to payroll processing, All Team will generate and send invoices to customers using information provided by the franchisee, with instructions for the customer to remit payment directly to All Team. All invoices will include a notice that they have been sold and assigned to, are owned by and are payable directly and only to ATFC. The franchisee must also pay All Team a Processing Fee of 1.65% of Temporary Employment Gross Billings from the prior week, which is due no later than Friday. This fee is subject to change with written notice, but All Team will not change it more than once a year.
All Team also offers to process the payroll for the franchisee's administrative employees at no additional charge. All Team will pay Direct Payroll Costs on behalf of the franchisee from the franchisee's account, including any penalties due to late filing or errors in calculating tax due, except to the extent attributable to any action or inaction of the franchisee. All Team will advise the franchisee of the administrative payroll costs via electronic mail after payroll has been processed. The franchisee is responsible for obtaining and maintaining the computer hardware and software required by All Team to provide these services and must allow All Team to access data and statistical information and reports. All Team will keep this data confidential unless legally required to disclose it, in which case they will attempt to notify the franchisee in advance.