Who ultimately decides whether an All Team franchisee can provide services for a National/Regional Account?
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, the ultimate decision on whether a franchisee can provide services for a National/Regional Account rests with the National/Regional Account itself. While All Team Franchise Corporation (ATFC) may offer a franchisee the opportunity to service locations of a National/Regional Account within their area, the account has the final say. This means that even if ATFC approves a franchisee, the National/Regional Account can still reject them as a service provider.
This stipulation has significant implications for All Team franchisees. It highlights that securing National/Regional Account business is not guaranteed, even if the franchisee is in good standing with All Team and has the capacity to fulfill the service requirements. The franchisee's ability to generate revenue from these accounts is therefore subject to the preferences and requirements of the National/Regional Account, which are outside of the franchisee's direct control. Franchisees should focus on building strong relationships and meeting the specific needs of these accounts to increase their chances of acceptance.
Furthermore, the FDD states that All Team manages and controls all National/Regional Accounts, even those initially procured by the franchisee. This includes negotiating agreements and disseminating information to franchisees who may service these accounts. While franchisees may develop accounts that qualify as National/Regional Accounts, All Team reserves the right to reject any such account in its sole judgment and discretion. This underscores All Team's control over these key accounts and the importance of franchisees adhering to the System standards to maintain eligibility for servicing them.
In practical terms, an All Team franchisee needs to be prepared to meet the specific requirements of National/Regional Accounts, including maintaining required insurance, complying with audit requests, and signing necessary documents. Failure to meet these requirements can result in financial penalties, starting at $1,000 for the first violation and escalating to $5,000 for the third violation, and potentially losing the ability to service National/Regional Accounts altogether. Therefore, franchisees must prioritize compliance and quality of service to maintain their eligibility and avoid penalties.