Is the All County Advertising Fund audited?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
The Advertising Fund will not be used to defray any of our general operating expenses, except for such reasonable salaries, administrative costs, travel expenses and overhead as we may incur in activities related to the administration and activities of the Advertising Fund and its programs. The Advertising Fund is not audited, and there are no restrictions under the terms of the Franchise Agreement that it must be audited at any time. (Franchise Agreement Articles 17.1. through 17.4.). The Advertising Fund will not be used to solicit the sale of franchises.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 20–26)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the Advertising Fund is not audited. The document explicitly states that there are no requirements in the Franchise Agreement for the fund to be audited at any time. However, All County will separately account for the Advertising Fund and provide an annual compiled statement of the Advertising Fund upon a franchisee's written request.
This means that while franchisees can request a compiled statement, which summarizes the fund's financial activity, it does not undergo the scrutiny of a formal audit conducted by an independent accounting firm. An audit provides a higher level of assurance regarding the accuracy and reliability of the financial information.
For a prospective All County franchisee, this implies a need to carefully review the annual compiled statements and potentially seek professional financial advice to interpret them. While the FDD does not guarantee an audit, a franchisee can request the annual compiled statement to stay informed about how the advertising fees are being utilized. It is important to note that the fees contributed by franchisees are not held in a trust or fiduciary relationship, but rather in an ordinary commercial relationship.