What is the All Team USER's role in relation to the processing services?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
ll documentation, training manuals, and supplemental computer hardware. ATFC will train USER to facilitate the use of the computer program. Said computer program is designed for "front office" operations in the temporary staffing business, including payroll processing and client billing.
- H. "Wages" means the salaries or wages earned by USER's temporary personnel employees for work performed for Customers.
II. Basic Agreement.
- A. Services. USER agrees to exclusively utilize ATFC for certain processing services, including billing to clients, and payroll for USER's temporary personnel employees based on the information provided by USER which will be entered into the required Software by USER. Provided USER is not in default hereunder and under the Franchise Agreement, ATFC agrees to render the services set indicated below for USER's Business in the manner specified in this Processing Agreement ("Services").
-
- Paychecks. ATFC will prepare weekly, the payroll run for each temporary personnel employee utilized by a Customer, from USER's account, based on the Wages reported by USER after deducting and withholding thereof an amount equal to all income, social security and other taxes, disability payments and other deductions (except worker's compensation insurance premiums) which may be required by applicable law to be deducted and withheld, as directed by USER. The use of Pay Cards is highly recommended where allowed by law. However, payroll checks may be either printed in USER'S office (on a printer approved by ATFC), or in ATFC's office and sent overnight to USER at USER's expense. In order for ATFC to provide this service, USER must submit timecards, or related reporting, to ATFC weekly no later than noon on Wednesday based on the prior week. These timecards will then be matched up with each invoice by USER, saved electronically in a location designated by ATFC for future reference, and included with the invoice which will be sent to the Customer, if applicable.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the "USER" (franchisee) plays a crucial role in providing information necessary for All Team to perform processing services. The franchisee agrees to exclusively utilize All Team for specific processing services, including billing clients and managing payroll for temporary personnel. This is based on the data the franchisee inputs into the required software.
The franchisee is responsible for entering data into the required software. They must submit timecards or related reports to All Team weekly, no later than noon on Wednesday, based on the prior week's activities. These timecards are then matched with invoices by the franchisee and saved electronically for future reference. Failure to provide invoices and timecards on time can result in fines: $1,000 for the first violation, $2,500 for the second, and $5,000 for the third and each subsequent violation.
All Team will prepare weekly payroll runs for each temporary employee, deducting and withholding the necessary taxes and deductions as directed by the franchisee. All Team will also prepare payroll tax deposits and quarterly tax reports for all federal and state jurisdictions on behalf of the franchisee. The franchisee must execute IRS Form 2848 to grant All Team the authority to file state and federal payroll taxes on their behalf. Ultimately, the franchisee is solely responsible for payroll taxes and must ensure adequate funds are available in their account for All Team to make payments. Any shortage of funds will be considered a material default under the agreement.
If the franchisee elects, All Team will also process payroll for the franchisee's administrative employees at no additional charge. All Team will prepare W-2s and send them in bulk to the franchisee for distribution to their employees. The franchisee is responsible for postage expenses. The franchisee must also obtain and maintain the computer hardware and software that All Team requires to provide services and must allow All Team to access data and statistical information and reports.