factual

Under what condition is another All Team agency responsible for providing a replacement candidate?

All_Team Franchise · 2025 FDD

Answer 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, franchisees must provide a guarantee period in their placement agreements, ensuring a replacement candidate if the original one is unsatisfactory within a specified timeframe. If the placement fee was split between the franchisee and another All Team agency, the agency that supplied the initial candidate is responsible for providing the replacement.

However, if the All Team agency cannot supply a replacement candidate, they must refund their portion of the placement fee to the franchisee, who then becomes responsible for finding the replacement. Conversely, if another All Team agency assisted the franchisee in filling the job order and a replacement is needed, the franchisee is responsible for providing the replacement or immediately refunding their share of the placement fee to the assisting agency.

It's important to note that All Team itself bears no responsibility for the amount of the placement fee refunded to either the franchisee or the other All Team agency if a replacement candidate cannot be secured. This arrangement highlights the collaborative nature of the All Team franchise system, where agencies may work together to fill positions, but also clarifies the financial responsibilities of each party involved in the event a replacement is required.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.