All About People Franchise Costs & Fees
Date of Incorporation: 2013
Franchising Since: 2014
Headquarters: Phoenix, Arizona
Business Description: All About People Franchise Services, LLC offers individual franchises for the operation of All About People businesses that operate a recruiting and staffing business that provides, among other services, contract, contract-to-hire, temporary, temporary-to-hire, direct hire, executive search placement and other staffing talent acquisition services.
Franchise Offer: The Business will be operated from a location the franchisor approves, offering the products and services it approves and using certain distinctive types of equipment, supplies, business techniques, designs, methods, specifications, standards, sales promotion programs and the “trademarks”, including the “All About People” trademarks (collectively, the System).
Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee franchisees’ note, lease or obligation, nor do it receive payment or other consideration for the placing of financing.
Training and Assistance: The franchisor will provide, and franchisees (or if an entity, a Principal Owner who has been approved by the franchisor) and any proposed manager of the Business (the Branch Manager) along with the Account Executives, must attend, an initial training program on the operation of the Business. Within 7 days following the opening of the Business the franchisor will provide franchisees with the services of one of its employees for a period of up to 3 days to assist franchisees in the opening and initial operations of the Business. In addition, the franchisor may require that franchisees (or the Principal Owner of a franchisee that is an entity) and the Branch Manager as well as additional members of franchisees’ internal staff attend, or when available, participate by Internet in, supplemental and refresher training programs during the term of the Franchise Agreement. Except under certain circumstances, franchisees must attend, at their expense, any annual franchise convention and/or conference we may hold or sponsor and all meetings relating to new services, operational procedures or programs, training, business management, sales or sales promotion or similar topics, including any system-wide teleconferences or web-conferences.
Territory: Franchisees will operate their Business from a specific location that the franchisor approves inside the Protected Area. Franchisees will receive a “Protected Area” surrounding the Authorized Location of the Business. Typically, a Protected Area will include a total of at least 30,000 targeted jobs.
Term of Agreement and Renewal: The length of the initial franchise term is 20 years from the opening date of the business. If franchisees are in good standing, they can renew the Franchise Agreement for 2 additional 10 year terms.
Obligations and Restrictions: The Business must at all times be under the direct supervision (or, if the franchisee is a partnership, corporation or limited liability company, a Principal Owner) or a Branch Manager who we have approved and who has satisfactorily completed the training program. If a Branch Manager supervises the Business, franchisees (or the Principal Owner) must remain active in overseeing Business operations. Franchisees must offer and sell in their Business all and only, those products and services that the franchisor has approved.
Estimated Number of Units: 10
|Name of Fee||Low||High|
|Initial Franchise Fee||$48,000||$49,000|
|Real Property (Rental Expenses – Security Deposit and 1st six months’ rent)||$15,000||$20,000|
|Equipment, Fixtures and Supplies||$2,500||$5,000|
|Signs, Letterhead, Notecards, Envelopes and Business Cards||$2,000||$5,000|
|Insurance and Utility Deposits||$3,000||$6,000|
|Start-Up ToolKit & Proprietary Software System||$30,000||$30,000|
|Recruiting / Job Posting||$3,500||$5,050|
|Miscellaneous Pre-opening Expenses||$7,500||$10,000|
|Additional Funds (6 months)||$162,500||$162,500|
|Type of Fee||Amount|
|Royalty Fee||6.25% of total Gross Staffing Sales for all contract, contract-to-hire, temporary, temporary-to-hire and payroll staffing services franchisees provide, including any conversion fees.
10% of total Gross Placement Sales for all direct hire and executive search services franchisees provide.
|Income and Sales Taxes||The franchisor may collect from you the cost of all taxes arising from the licensing of intellectual property to franchisees in the state where the Business is located, as well as any assessment on fees and any other income the franchisor receives from franchisees.|
|Brand Development Fee||0.75% of total Gross Sales.|
|Local Advertising||$1,000/month per territory.|
|Cooperative Advertising||Franchisees will contribute to their Local Advertising fees to a local ad fund.|
|National Account Management Fee||1% of National Account Gross Sales.|
|Proprietary Software System Fee||Currently $150 per month per user.|
|Technology Fee||$150 per month.|
|Employee Misclassification Fee||Varies. Franchisees will be responsible for any fees or additional workers’ compensation premiums the franchisor is assessed as a result of their misclassification of a Temporary Staffing Associate.|
|Client Account Fee||Amount of all fees, costs and expenses we are charged on the franchisee’s behalf.|
|Insurance||Cost of insurance.|
|Transfer Fee||$5,000 plus any applicable broker fees.|
|Audit||Cost of audit plus 18% interest per year from due date.|
|Interest Expenses||Lesser of 18% per year or the maximum rate permitted by law.|
|Late Fee||Lesser of $25 per delinquent payment or the maximum amount permitted by applicable law.|
|Payroll Funding Fee||Varies. The franchisor will charge franchisees for the total payroll expense that the franchisor incurs on behalf of the temporary or contract employees you place at a customer location on a weekly basis.|
|PeopleNet Fee||$.02 per hour of time processed for timekeeping purposes of Temporary Staffing Associates.|
The above information has been taken from the FDD of All About People. Year of FDD: 2016
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