Who is responsible for billing all National/Regional Accounts under the All Team franchise agreement?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
If one or more locations of a National/Regional Account fall within FRANCHISEE's Area, ATFC will first offer FRANCHISEE the opportunity to provide such services for said locations on the terms and conditions that it has established with such National/Regional Account. FRANCHISE is not required to service a National/Regional Account and if FRANCHISEE fails to accept such offer in the manner and within the time period that ATFC specifies, ATFC has the right to service the account itself, or may authorize other franchisees, or affiliate-owned or licensee-owned agencies, to provide such services. Notwithstanding the foregoing, even if the FRANCHISEE fails to accept the job order to service a certain National/Regional Account, the FRANCHISEE may fill subsequent job orders when FRANCHISEE has temporary staff or management candidates available. However, the decision to accept the FRANCHISEE as a provider of services for the National/Regional Account must ultimately rest with the National/Regional Account. All National/Regional Accounts will be billed by ATFC, and customer payments for all National/Regional Accounts will be collected by ATFC exclusively and forwarded to FRANCHISEE as applicable.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, All Team Franchise Corporation (ATFC) handles the billing and payment collection for National/Regional Accounts. Specifically, ATFC will bill these accounts and then forward the applicable payments to the franchisee. This means franchisees are not directly responsible for invoicing or collecting payments from these larger, multi-location clients. Instead, they receive payment from All Team after ATFC has collected from the client.
This arrangement centralizes financial interactions with major clients, potentially streamlining the payment process and reducing the administrative burden on individual franchisees. It also ensures consistency in billing practices across the All Team system for these key accounts. However, franchisees are still responsible for providing the services to these accounts according to the terms and conditions set by All Team and the client.
For a prospective franchisee, this billing structure offers both advantages and potential drawbacks. On the one hand, it simplifies financial management and reduces the risk of dealing with large, complex accounts receivable. On the other hand, it means franchisees are dependent on All Team for timely and accurate payment processing. Therefore, it would be prudent for potential franchisees to inquire about All Team's payment processing timelines and procedures to ensure they align with their financial needs and expectations.