Does All County create a fiduciary relationship with franchisees regarding the Advertising Fund?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
The fees contributed by Franchisees are not in a "trust," and are not held by us in any fiduciary or similar special relationship. No relationship is created beyond an ordinary commercial relationship for our mutual economic benefit.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 20–26)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the fees contributed by franchisees to the Advertising Fund are not held in a fiduciary or similar special relationship. All County states that no relationship is created beyond an ordinary commercial relationship for mutual economic benefit. This means that All County does not have the legal responsibilities of a trustee or fiduciary regarding the Advertising Fund.
All County may use the Advertising Fund to prepare and produce advertising, public relations, market research, and promotional programs in various media. These efforts may be national, regional, or local, and there is no guarantee of effectiveness in a franchisee's specific geographic area. The monthly Advertising Fund Fee is the greater of 1% of Gross Revenue or $195, with all franchisees contributing at the same percentage rate.
During the fiscal year ending December 31, 2024, All County spent 26% of the Advertising Fund monies on website development services, 51.8% on client retention, and 22.2% on marketing and public relations. All County is not obligated to refund any unspent contributions when the Franchise Agreement terminates or expires. While All County will separately account for the Advertising Fund and provide an annual compiled statement upon written request, the fund is not audited, and there are no requirements for it to be audited.