What has the Department determined regarding All County's capitalization and reliance on franchise fees?
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 Department has made a determination regarding All County's financial status. Specifically, the Department has determined that All County has not adequately demonstrated that it is sufficiently capitalized. Additionally, the Department believes All County relies on franchise fees to fund its operations.
As a result of this determination, the Commissioner has imposed a fee deferral condition on All County. This condition mandates that All County must defer the collection of initial franchise fees from California franchisees. This deferral remains in effect until All County has fulfilled all of its pre-opening obligations to the franchisee and the franchisee is open for business.
This condition is specific to California franchisees and is designed to protect them, given the Department's concerns about All County's capitalization. Prospective franchisees in California should be aware of this deferral and understand that they will not be required to pay the initial franchise fee until certain milestones are met. This could be seen as a benefit to franchisees in California, as it reduces their upfront financial risk.