factual

What is required of another All Team agency if an All Team franchisee assists them in placing a Candidate?

All_Team Franchise · 2025 FDD

Answer from 2025 FDD Document

In any event, you must seek the assistance of other All Team agencies if you cannot fill a job order. If a Candidate who is hired by a Placement Customer is placed with the assistance of another All Team agency, you will equally share the placement fee with the party who assisted in the placement, after first deducting the amounts due to us under the Franchise Agreement. Likewise, if you assist another All Team agency in placing a Candidate, the other All Team agency will be required to share the placement fee with you, after first deducting the amounts due to us under the Franchise Agreement.

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, if an All Team franchisee assists another All Team agency in placing a candidate, the agency receiving the assistance is required to share the placement fee with the assisting franchisee. This split occurs after deducting any amounts due to All Team under the Franchise Agreement. This arrangement ensures that franchisees are compensated for their efforts in helping other agencies within the All Team system.

Furthermore, the FDD outlines the responsibility for providing a replacement candidate if the original placement is not satisfactory. If the placement fee was split, the All Team agency that initially supplied the candidate is responsible for finding a replacement. If they cannot provide a replacement, they must refund their portion of the placement fee to the agency that provided assistance. The assisting agency then becomes responsible for finding a replacement candidate.

This fee-sharing and replacement policy encourages collaboration among All Team franchisees. It also ensures that clients receive adequate service, even when placements don't work out initially. However, All Team bears no responsibility for the amount of the placement fee being refunded to either franchisee for failure to obtain a replacement candidate.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.