Does All County have discretion in applying payments made by the franchisee?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree that either before opening the business or within 60 days of opening the Business, you must spend not less than Three Thousand Dollars ($3,000) for local advertising and promotion of your Business.
You acknowledge and agree that each month during the Term of the Agreement you must spend not less than One Thousand Five Hundred Dollars ($1,500) for local advertising and promotion of your Business.
You are required to provide proof of payment for the Business Promotion, as outlined in Article 17.5.
We may periodically review your books and records to verify your expenditures for advertising and promotion as required by this Agreement.
Proof of expenditures is your burden.
If we determine that you have not spent the requisite amounts, we may require you to pay such unexpended amounts into the Advertising Fund.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, All County has some discretion regarding how franchisee payments are applied, specifically in the context of advertising expenditures. If a franchisee fails to spend the required amounts on local advertising and promotion, All County may require the franchisee to pay the unexpended amounts into the Advertising Fund.
All County franchisees are obligated to spend a minimum of $3,000 on local advertising and promotion either before opening their business or within 60 days of opening. Furthermore, franchisees must spend at least $1,500 each month on local advertising and promotion throughout the term of the agreement. Franchisees are required to provide proof of these expenditures, and All County retains the right to review the franchisee's books and records to verify compliance with these advertising requirements.
This policy ensures that All County franchisees meet their advertising obligations, allowing All County to enforce compliance by directing unspent advertising funds into the central Advertising Fund. This arrangement gives All County a degree of control over how advertising funds are ultimately utilized, especially when a franchisee does not meet their local spending requirements.