Under what circumstances will All Team not be responsible for the placement fee?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
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, All Team itself will not be responsible for refunding any portion of a placement fee under any circumstances. The responsibility for providing a replacement candidate or refunding the placement fee falls on the franchisee.
Specifically, if an All Team agency splits a placement fee with another All Team agency and the placement customer is not satisfied with the candidate, the agency that supplied the candidate is responsible for providing a replacement. If they cannot provide a replacement, they must refund their portion of the placement fee to the other agency, which then becomes responsible for finding a replacement candidate. Similarly, if a franchisee assists another All Team agency in filling a job order and a replacement is needed, the franchisee is responsible for providing a replacement or refunding their portion of the fee to the other agency.
This arrangement places the onus of candidate satisfaction and replacement on the franchisees involved in the placement, rather than on All Team itself. This means that franchisees need to be prepared to either find suitable replacement candidates or absorb the cost of refunding the placement fee if a candidate does not work out. This could impact a franchisee's profitability, especially if they experience a high rate of candidate dissatisfaction. Franchisees should carefully consider these potential costs and develop strategies for candidate screening and replacement to mitigate these risks.