How will All Team use the sums received for the Advertising Fund?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
solicitation for the sale of franchises.
No part of the Advertising Fund will be used by us to defray any of our general operating expenses other than those reasonably allocable to such advertising, which includes but is not limited to the cost of maintaining, administering, directing, placing and preparing national advertising materials, programs and public relations activities, the cost of employing advertising agencies and public relations firms to assist therewith, research and development and reasonable salaries, expenses, administrative costs and overhead as we incur in activities reasonably related to the administration or direction of the Advertising Fund and its advertising programs.
The Advertising Fund is intended to maximize recognition of our brand and that we will not be obligated, in administering the Fund to make expenditures for you which are equivalent or proportional to your contribution, or to ensure that any particular franchisee benefits directly or pro rata from expenditures made by the Fund. All sums received for the Fund will be maintained in an account separate from our other monies and will be used only as so provided. We will maintain separate bookkeeping accounts for the Fund and will provide an unaudited financial statement of the account if you so request in writing. If we do not use all of the funds in a particular fiscal year, the remaining funds will be carried over to the next fiscal year and be included in that year's advertising budget.
The Fund shall be maintained and administered by us as follows: A National Advertising Council ("NAC") shall make strategic planning decisions. We shall retain sole right to make any day to day decisions necessary to carry out the strategic planning decisions of the NAC. The NAC shall be comprised of 4 members made up of franchisees and the Director who will be one of our employees, officers or directors. The franchisee members shall be elected annually by all franchisees of the System based upon one vote for each Agency which is in full compliance with its Franchise Agreement.
The NAC shall review and approve or disapprove any long-range marketing plans that we or other franchisees shall develop and the NAC may develop its own long range marketing plans. After a marketing plan has been approved by the NAC, we shall implement the plan without further review by the NAC. We reserve the right, in its sole discretion, to establish and modify, from time to time, the duties, organization, form, manner of operation, membership, methods of member selection, and all other aspects of the NAC (other than eligibility for voting) pursuant to such governing documents as we may prepare; provided, however that members elected by franchisees shall in no event be less than 50% of the members of the NAC. Any deadlocks in the NAC shall be resolved by the decision of the Director of the NAC.
Other than as described above, there is currently no other advertising council composed of franchisees that advise us on advertising policies. Currently there are no local or regional advertising cooperatives.
Computer System
You must purchase at least 1 computer (desktop or laptop) for each administrative employee working in the office. You must also purchase a multi-function (copy/ scan/ print) machine. An additional laser printer, as approved by us, is required if you choose to print payroll checks in your office. (Any equipment must be approved by us.) The costs are between $1,800 - $2,500.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 18–23)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the sums received for the Advertising Fund will be maintained in a separate account and used as provided in the FDD. These funds are intended to maximize recognition of the All Team brand. All Team is not obligated to make expenditures for franchisees equivalent or proportional to their contribution, or to ensure that any particular franchisee benefits directly or pro rata from expenditures made by the Fund. If all the funds are not used in a particular fiscal year, the remaining funds will be carried over to the next fiscal year and included in that year's advertising budget.
The Advertising Fee, which is a franchisee's contribution to the Advertising Fund, is 1% of Temporary Employment Gross Billings and 2% of Permanent Placement Gross Billings. This fee may be used for various advertising and administrative expenses, including production costs, website maintenance and design, membership in industry associations, and media placement costs. The funds can be allocated to advertising on television, radio, direct marketing mailings, newspapers, the Internet, and other media, with All Team retaining the right to determine the type of advertising and the media used.
The Advertising Fund itself is not considered an asset of All Team. Affiliates of All Team will contribute the same percentage for each agency that they operate. Furthermore, All Team confirms that no money contributed to the Advertising Fund will be used for soliciting the sale of franchises. A National Advertising Council (NAC) makes strategic planning decisions, while All Team retains the sole right to make day-to-day decisions to carry out the NAC's strategic plans. The NAC consists of four members, including franchisee representatives and a Director who is an All Team employee, officer, or director. Franchisee members are elected annually by all franchisees in full compliance with their Franchise Agreement.