Is there any geographic restriction on servicing Placement Customers and Candidates for All Team franchisees?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
eking to hire permanent personnel ("Candidates").
Generally, your Placement Customers will be located within your Area. However, you may service Placement Customers and Candidates from anywhere within or outside of your Area except for the following restriction: If you obtain a request to fill a position ("job order") outside of your Area, you must first offer the agency (i.e. an agency operated by any of our affiliates or other franchisees or licensees) that operates in that location the opportunity to fill that job order. If the customer request is not referred to the agency office that operates in that location, you will be charged 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. In addition, you will be required to pay restitution of the profit you derived from the wrongfully-performed services to the agency that services that area, as applicable. If that All Team Agency cannot or waives their right to fill the job order, in writing, you may fill it. 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 th
Source: Item 12 — TERRITORY (FDD pages 23–26)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, franchisees generally service Placement Customers within their designated Area. However, franchisees can service Placement Customers and Candidates from outside their Area with some restrictions. If a franchisee obtains a job order outside of their Area, they must first offer the opportunity to fill the order to the All Team agency operating in that location. If the franchisee fails to refer the customer request, they will be charged 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. The franchisee will also be required to pay restitution of the profit derived from the services to the agency that services that area.
If the All Team agency in the other location cannot or waives their right to fill the job order in writing, the franchisee may fill it. All Team franchisees must seek assistance from other All Team agencies if they cannot fill a job order themselves. If a Candidate is hired by a Placement Customer with the assistance of another All Team agency, the placement fee will be equally shared between the agencies after deducting amounts due to All Team under the Franchise Agreement. Similarly, if a franchisee assists another All Team agency in placing a Candidate, the other agency must share the placement fee with the franchisee, after deducting amounts due to All Team.
Franchisees may not conduct marketing activities or solicit new customers or candidates outside their Area without prior written consent from All Team, which may be given, withheld, conditioned, or withdrawn at any time. These restrictions aim to protect the territories of other franchisees and ensure cooperation within the All Team franchise system. Franchisees should be aware of these limitations and the potential penalties for non-compliance.