Under what condition can an All Team franchisee service a customer outside of their designated area?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
ice through only 1 office, ATFC may require FRANCHISEE to open additional offices all within the limits or boundaries of the Area. In such event, the number of offices which need to be established in the Area and the timing of establishing these offices will be described in Exhibit I.
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- Operations of Temporary Service Business. FRANCHISEE must operate the Temporary Service Business solely within the Area. FRANCHISEE may service customers even if the corporate office of a customer is located outside of the Area so long as the services to be provided for the customer will be located in the Area. If a customer wishes FRANCHISEE to provide services outside of the Area, FRANCHISEE shall immediately refer said customer to the agency office that services that area. If the customer is not referred to the agency office that services that area, FRANCHISEE 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. ATFC has the right to collect these amounts in addition to exercising any and all other rights it may have for non-compliance under this Agreement. In addition, FRANCHISEE will be required to pay restitution of the profit FRANCHISEE derived from the wrongfully-performed services to the agency that services that area, as applicable. If the agency office that services that area waives the right to service that customer, in writing, FRANCHISEE may service that customer outside of its Area. If neither ATFC, any of its affiliates or licensees, nor any other agency services said area, FRANCHISEE may provide temporary services to said customer. FRANCHISEE's Agency shall provide only the temporary services set forth in the Confidential Operations Manual.
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- Operations of Permanent Placement Business. FRANCHISEE must operate the Permanent Placement Business within the Area out of the same office that the Temporary Service Business is operated. FRANCHISEE's Agency shall provide only the placement services set forth in the Confidential Operations Manual. FRANCHISEE's customers for Permanent Placement Business ("Placement Customers") are those seeking to hire permanent personnel ("Candidates").
FRANCHISEE's Placement Customers will typically be located within the Area. However, FRANCHISEE may service Placement Customers and Candidates from anywhere within or outside of the Area except for the following restriction: If FRANCHISEE obtains a request to fill a position ("job order") outside of its Area, FRANCHISEE must first offer the ATFC agency (i.e. an agency operated by any affiliate or other franchisee or licensee) that operates in the location of the job, the opportunity to fill that job order. If the customer is not referred to the agency office that operates in the location of the job, FRANCHISEE 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. ATFC has the right to collect these amounts in addition to exercising any and all other rights it may have for non-compliance under this Agreement. In addition, FRANCHISEE will be required to pay restitution of the profit FRANCHISEE derived from the wrongfullyperformed services to the agency that services that area, as applicable. If that ATFC agency cannot or waives the right to fill the job order, in writing, FRANCHISEE may fill it.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, there are specific conditions under which a franchisee can service customers outside of their designated area. For temporary service businesses, an All Team franchisee may service customers whose corporate office is outside their designated area as long as the actual services are provided within the franchisee's area. If a customer requests services outside the franchisee's area, the franchisee must refer the customer to the appropriate agency servicing that area. Failure to do so can result in fines: $1,000 for the first violation, $2,500 for the second, and $5,000 for the third and subsequent violations, along with restitution of profits to the agency that should have serviced the customer.
For permanent placement businesses, an All Team franchisee may service customers and candidates from anywhere, with one key restriction. If a franchisee receives a job order from outside their area, they must first offer the opportunity to fill the job to the All Team agency operating in that location. If the franchisee fails to refer the customer, 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.
In both temporary and permanent placement scenarios, an All Team franchisee can service customers outside their area if the agency that normally services the area either waives their right to service the customer in writing or cannot fulfill the job order. Additionally, for temporary services, if no All Team agency services the area, the franchisee may provide services to the customer. These provisions ensure that All Team franchisees primarily focus on their designated areas while also allowing for flexibility and cooperation within the All Team franchise system.