When are auditing costs reimbursed to All County?

According to All County's 2025 Franchise Disclosure Document, franchisees must reimburse All County for actual auditing costs. This reimbursement is required under specific circumstances: if the franchisee fails to comply with the Franchise Agreement, fails to allow full access to their records, or if All County discovers that the franchisee has underreported gross receipts by 2% or more for two or more reporting periods. The timing for reimbursing these auditing costs is listed as 'Reimbursement of our actual auditing costs'.

For a prospective All County franchisee, this means that maintaining accurate financial records and adhering to the Franchise Agreement is crucial to avoid incurring auditing costs. The franchisee should ensure they provide full access to their records when requested and accurately report their gross receipts to prevent triggering an audit. Failing to do so could result in unexpected expenses, as the franchisee will be responsible for covering the actual costs of the audit.

This condition is fairly standard in franchising. Franchisors typically reserve the right to audit franchisees to ensure compliance and accurate reporting. The specific thresholds (e.g., 2% underreporting) and conditions that trigger an audit can vary, so it's important for the franchisee to understand these terms in the Franchise Agreement. Keeping meticulous records and operating in good faith are the best ways for an All County franchisee to avoid these auditing costs.