When must All County defer the collection of initial fees from California franchisees?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
The Department has determined that we, the franchisor, have not demonstrated we are adequately capitalized and/or that we must rely on franchise fees to fund our operations. The Commissioner has imposed a fee deferral condition, which requires that we defer the collection of all initial fees from California franchisees until we have completed all of our pre-opening obligations and you are open for business.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the collection of initial fees from California franchisees is deferred under specific conditions. The California Department of Financial Protection and Innovation has determined that All County has not adequately demonstrated that it is sufficiently capitalized or that it does not rely on franchise fees to fund its operations.
As a result of this determination, the Commissioner has imposed a fee deferral condition. This condition mandates that All County must defer the collection of all initial franchise fees from franchisees located in California.
All County is required to wait until it has completed all of its pre-opening obligations to the franchisee and the franchisee is open for business before collecting any initial fees. This requirement is designed to protect franchisees in California, ensuring that All County fulfills its obligations before receiving payment.