What is the effect of the fee deferral condition imposed on All County by the Commissioner?
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 Commissioner has imposed a fee deferral condition due to the determination that All County has not demonstrated adequate capitalization and/or relies on franchise fees to fund operations. This condition specifically affects California franchisees.
Under this fee deferral, All County is required to postpone the collection of initial franchise fees from California-based franchisees. This deferral lasts until All County has fulfilled all of its pre-opening obligations to the franchisee. The fee is only collected once the franchisee is open and operating their All County business.
For a prospective All County franchisee in California, this means they will not have to pay the initial franchise fee upfront. This can significantly reduce the initial investment needed to start the franchise. However, it's important to understand exactly what All County's pre-opening obligations are and ensure these are clearly defined in the franchise agreement to avoid any disputes or delays in opening the franchise.