How are the All County Advertising Fund's finances accounted for?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
her activities which we believe will enhance the image of the System, including, among other things, the costs of preparing and conducting radio, cable television and print advertising campaigns; developing, maintaining, and updating a Website on the Internet; direct mail advertising; marketing surveys; employing advertising and/or public relations agencies to assist therein; purchasing promotional items; and providing promotional and other marketing materials and services to the businesses operating under the System. The Advertising Fund will furnish you with samples of advertising, marketing formats, promotional formats and other materials at no additional cost to you when we deem appropriate. Multiple copies of such materials will be furnished to you at our direct cost of producing them plus any related shipping, handling and storage charges.
- 17.2. Accounting of Advertising Fund. The Advertising Fund will be accounted for separately from our other funds and 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 operation of the Advertising Fund and its programs. This may include, without limitation, conducting market research, preparing advertising promotion and marketing materials, and collecting and accounting for contributions to the Advertising Fund.
- 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.
- 17.2.4.
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 is accounted for separately from All County's other funds. The funds will not be used to cover All County's general operating expenses, except for reasonable salaries, administrative costs, travel, and overhead related to managing the Advertising Fund and its programs. This can include market research, preparing advertising and marketing materials, and managing contributions to the fund.
All County may spend more or less than the total contributions to the Advertising Fund in any fiscal year. The Advertising Fund can borrow money from All County or other sources to cover deficits or invest surplus funds for future use. Any interest earned on the Advertising Fund will be used to pay advertising costs before using other assets of the fund.
All County will prepare an annual compiled statement of monies collected and costs incurred by the Advertising Fund, which will be provided to franchisees upon written request. All County has the right to incorporate the Advertising Fund or operate it through a separate entity when deemed appropriate, and this entity will have the same rights and duties. All County can defer or reduce franchisee contributions to the Advertising Fund, or even suspend or terminate the fund with 30 days' notice. If the Advertising Fund is terminated, any unspent money will be distributed to franchisees in proportion to their contributions during the preceding three months.