What is the effect of All County's 'sole business judgment' on the Advertising Fund?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
em necessary or appropriate in our sole business judgment. The Advertising Fund is intended to maximize recognition of the Marks and patronage of ALL COUNTY® businesses**.** We will endeavor to utilize the Advertising Fund to develop advertising and marketing materials and programs and to place
advertising that will benefit all ALL COUNTY® businesses. You will be required to contribute to the Advertising Fund as set forth in this Agreement.
- 17.1.1. Contribution. Each Accounting Period during the Term of the Agreement, you agree to contribute to the Advertising Fund an amount which shall be calculated as either the greater of one percent (1%) of Gross Revenue the Business derived during the respective Accounting Period or One Hundred Ninety Five Dollars ($195) (the "Ad Fee"). The Ad Fee shall be payable monthly at the same time and in the same manner as the Royalty due hereunder.
- 17.1.2. Control. We will direct and control all programs financed by the Advertising Fund, with sole business judgment over the creative concept materials and endorsements used therein and the geographic market and media placement and allocation thereof. We may do the marketing and advertising or we may elect to outsource the marketing and advertising to an agency.
- 17.1.3. Purpose of Advertising Fund. The Advertising Fund may be used to pay the costs of maintaining, administering, directing, conducting and preparing advertising, marketing, public relations, and/or promotional programs and materials, and any other activities which we believe will enhance the image of the System, including, among other things, the costs of preparing and conducting radio, cable television and print advertising campaigns; developing, maintaining, and updating a Website on the Internet; direct mail advertising; marketing surveys;
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 'sole business judgment' over the Advertising Fund. This means All County has the authority to direct and control all programs financed by the Advertising Fund. This includes making decisions about the creative concepts, materials, endorsements, geographic markets, media placement, and allocation of advertising resources.
This control allows All County to determine how the advertising funds are spent, with the stated purpose of enhancing the image of the All County system. All County can choose to handle the marketing and advertising internally or outsource it to an agency. The fund can cover various costs, such as radio, television, and print advertising, website development, direct mail, marketing surveys, and promotional materials.
While franchisees contribute to the Advertising Fund, All County is not obligated to ensure that expenditures in any specific geographic area are proportionate to the contributions from franchisees in that area. Nor is All County obligated to ensure that any franchisee benefits directly or proportionally to their ad fee payments. This gives All County considerable latitude in how the Advertising Fund is managed and spent, potentially leading to situations where some franchisees may not perceive a direct benefit from their contributions.