factual

How are All County Auditing Costs calculated?

All_County Franchise · 2025 FDD

Answer from 2025 FDD Document

TYPE OF FEE AMOUNT DUE DATE REMARKS
Professional Organization Fees Varies. The estimated range of the required fees annually is $300 to $1,000 Varies Paid to any professional organizations to which we require you to belong.
Additional Required Training Fees Varies. Typically $300 per day if we elect to charge for training. The estimated range of the required fees annually for additional training is $300 to $2,000 As we and you agree Paid to us for additional required training.
Per Day Fee $300, subject to change As we and you agree Paid to us if you need us to help you operate the Franchise.
Advertising Fee The greater of 1% of Gross Revenue1 or $195 per month When the Royalty is paid Paid to us to promote the Marks and the System regionally or nationally.
Auditing Costs Actual Costs Reimbursement of our actual auditing costs We assess this charge only for audits needed in the event you fail to comply with the Franchise Agreement, fail to allow full access to your records, or we find that you underreported your Gross Receipts by 2% or more for two or more reporting periods.
Transfer Fees $10,000, plus costs paid by transferor. $2,500 paid by transferee. Concurrently with the transfer Paid to us if you want to transfer the Franchise to a third party.
Costs and Attorney’s Fees Actual Costs Reimbursement of our actual costs Paid to us by you for accounting, attorney and other professional fees if an action is brought against you for breach of the Franchise Agreement.

Source: Item 6 — Other Fees (FDD pages 10–12)

What This Means (2025 FDD)

According to All County's 2025 Franchise Disclosure Document, auditing costs are calculated as the actual costs incurred by All County. These costs are only assessed if specific conditions are met. Namely, All County will charge a franchisee for audits if the franchisee fails to comply with the Franchise Agreement, fails to allow full access to their records, or if they underreport their Gross Receipts by 2% or more for two or more reporting periods.

In practical terms, this means that as long as an All County franchisee adheres to the Franchise Agreement, provides access to required records, and accurately reports their Gross Receipts, they should not incur any auditing costs. However, if a franchisee violates these terms, they will be responsible for reimbursing All County for the full cost of the audit.

This type of auditing provision is relatively common in franchise agreements. It serves as a deterrent against non-compliance and ensures that franchisees accurately report their financial performance. Prospective All County franchisees should understand these conditions and maintain accurate records to avoid potential auditing costs.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.