Can the All County Advertising Fund borrow money to cover deficits?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
17.2.1. Expenditure of Advertising Fund. We may spend, on behalf of the Advertising Fund, in any fiscal year, an amount that is greater or less than the aggregate contribution of all ALL COUNTY® businesses to the Advertising Fund in that year and the Advertising Fund may borrow from us or others to cover deficits or invest any surplus for future use.
17.2.2. Interest Earned. All interest earned on monies contributed to the Advertising Fund will be used to pay advertising costs before other assets of the Advertising Fund are expended.
17.2.3. Reporting. We will prepare an annual compiled statement of monies collected and costs incurred by the Advertising Fund and furnish the statement to you upon written request.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the Advertising Fund can borrow money to cover deficits. Specifically, All County may spend more than the aggregate contributions from franchisees in a fiscal year. To cover these deficits, the Advertising Fund may borrow from All County or other sources. Conversely, any surplus in the Advertising Fund may be invested for future use.
Interest earned on the Advertising Fund's monies will be used to pay advertising costs before using other assets of the fund. All County will provide an annual compiled statement of monies collected and costs incurred by the Advertising Fund to franchisees upon written request. All County retains the right to incorporate the Advertising Fund or operate it through a separate entity.
This arrangement provides All County with flexibility in managing the Advertising Fund, allowing for strategic investments in advertising even when current contributions are insufficient. However, it also means that franchisees are not guaranteed that advertising expenditures in their specific geographic area will be proportionate to their contributions. Prospective franchisees should consider the potential impact of these policies on their local advertising efforts and the overall effectiveness of the Advertising Fund.