Is the All County Advertising Fund held in trust?

According to All County's 2025 Franchise Disclosure Document, the advertising fees paid by franchisees are not held in a trust. The document specifies that the fees are not held in any fiduciary or similar special relationship, and the relationship between All County and its franchisees is considered an ordinary commercial relationship for mutual economic benefit.

This means that All County has considerable discretion in how the Advertising Fund is managed and spent. While All County will separately account for the Advertising Fund and provide an annual compiled statement upon written request, there is no obligation to refund any unspent contributions if the Franchise Agreement is terminated or expires. Also, the Advertising Fund is not audited, and there are no restrictions that it must be audited at any time.

For a prospective franchisee, this underscores the importance of carefully reviewing the compiled statement and understanding how the advertising funds are being utilized. While the FDD states that the Advertising Fund will not be used to solicit the sale of franchises or to defray general operating expenses (except for reasonable salaries, administrative costs, travel expenses, and overhead related to the fund's administration), the lack of a trust arrangement means franchisees have less direct control or guarantee over how their contributions are spent. Franchisees should inquire about the historical performance of the Advertising Fund and the criteria used to allocate resources for advertising and marketing efforts.