Who is ultimately responsible for payroll taxes for All Team franchisees?

According to All Team's 2025 Franchise Disclosure Document, the franchisee (referred to as USER) is ultimately responsible for payroll taxes. While All Team will prepare payroll tax deposits and quarterly tax reports on behalf of the franchisee, the franchisee is solely responsible for the actual payroll taxes and ensuring there are adequate funds in their account to cover these payments. A shortage of funds in the franchisee's account for payroll taxes is considered a material default under the agreement.

Specifically, the franchisee must execute IRS Form 2848 to grant All Team the authority to file state and federal payroll taxes on their behalf. All Team will then prepare and file the necessary payroll tax deposits and quarterly tax reports with the appropriate taxing authorities. However, this arrangement does not shift the responsibility for the taxes themselves from the franchisee to All Team.

This means that even though All Team handles the administrative tasks of preparing and filing payroll taxes, the franchisee bears the risk of any errors or omissions. The franchisee is responsible for ensuring the accuracy of the wage information provided to All Team and for maintaining sufficient funds to cover all payroll tax obligations. This is a common arrangement in franchising, where the franchisor provides support services but the franchisee retains ultimate responsibility for financial obligations.