How does All County calculate the auditing costs charged to a franchisee?
All_County Franchise · 2025 FDDAnswer 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, franchisees may incur auditing costs under specific circumstances. All County will only assess auditing costs if a 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.
If an audit is necessary due to one of these reasons, the franchisee is responsible for reimbursing All County's actual auditing costs. This means the franchisee will be charged the direct expenses All County incurs while conducting the audit.
This policy is fairly standard in franchising. It is designed to ensure compliance and accurate reporting of financial information. The franchisee is only responsible for these costs if they are in violation of the franchise agreement. Therefore, it is in the franchisee's best interest to maintain accurate records and comply with all terms of the agreement to avoid these potential expenses.