Under what condition can an All Team franchisee service Placement Customers and Candidates outside of their designated Area?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
ry 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. In any event, FRANCHISEE must seek the assistance of other ATFC agencies if it cannot fill a job order. If a Candidate who is hired by a Placement Customer is placed with the assistance of another ATFC agency office, FRANCHISEE shall equally share the placement fee with the party who assisted in the placement. ATFC will first take all of its fees from each party's half of the placement fee, and then pay the balance
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, a franchisee's Placement Customers will typically be located within their designated Area. However, the franchisee may service Placement Customers and Candidates from anywhere within or outside of their Area with one restriction.
The All Team franchisee must first offer the All Team franchise agency that operates in the location of the job the opportunity to fill the job order. If that All Team agency cannot or waives the right to fill the job order, in writing, the franchisee may fill it. If the customer is not referred to the agency office that operates in the location of the job, the 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. All Team has the right to collect these amounts in addition to exercising any and all other rights it may have for non-compliance under the Franchise Agreement. In addition, the franchisee will be required to pay restitution of the profit the franchisee derived from the wrongfully performed services to the agency that services that area, as applicable.
In any event, the All Team franchisee must seek the assistance of other All Team agencies if it cannot fill a job order. If a Candidate who is hired by a Placement Customer is placed with the assistance of another All Team agency office, the franchisee shall equally share the placement fee with the party who assisted in the placement. All Team will first take all of its fees from each party's half of the placement fee, and then pay the balance to the franchisee and the other All Team agency. Likewise, if the All Team franchisee assists another All Team agency in placing a Candidate, the other All Team agency will be required to equally share the placement fee with the franchisee, after All Team takes all of its fees from each party's half of the placement fee.