When does All County calculate and withdraw the Royalty Fee from the designated account?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
By the fifth (5th) day of the week following the end of each calendar month, we shall calculate the Royalty Fee due for the preceding month and may withdraw via EFT such amount and any other amounts due under this Agreement, including any advertising and marketing fees set forth under Article 17, directly from the designated account, unless we have agreed with you in writing to some other acceptable method of delivery of amounts due to us.
All costs and expenses of establishing and maintaining such designated account, including transaction fees and wire transfer fees, shall be paid by you.
You agree to maintain at all times sufficient funds in such designated bank accounts for such withdrawals.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the Royalty Fee is calculated by the fifth day of the week following the end of each calendar month. All County then withdraws the Royalty Fee, along with any other due amounts, via EFT (Electronic Funds Transfer) from the franchisee's designated bank account. This designated bank account must be established by the franchisee before opening their All County business.
The franchisee is responsible for maintaining sufficient funds in the designated account to cover these withdrawals. They also bear all costs associated with establishing and maintaining the account, including any transaction or wire transfer fees. The FDD specifies that All County has the right to review a franchisee's sales numbers on a daily basis, ensuring accurate Royalty Fee calculation.
In the event that a franchisee owes All County any money, All County has the right to offset those amounts against any money All County might owe the franchisee. This is a fairly standard practice in franchising, as it ensures timely payment of fees and provides the franchisor with a mechanism to collect outstanding debts. The franchisee must ensure that the designated bank account is set up correctly and that sufficient funds are always available to avoid any penalties or disruptions to their franchise agreement.