What expenses are included in the reimbursement for an All County audit?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 19.2. Audit Expense. In the event such inspection and/or audit is made necessary by your failure to furnish reports, supporting records or other information as herein required, or to furnish such items on a timely basis, you agree to reimburse us for the reasonable cost of such inspection or audit, including, without limitation, the charges of attorneys and independent accountants and the travel expenses, room and board and compensation of our employees.
- 19.3. Cure. In the event an inspection or audit reveals that any payments have been understated in any report to us, then you must immediately pay to us the amount understated upon demand, in addition to interest from the date such amount was due until paid, at the highest contract rate of interest permitted by law. If an inspection or audit discloses an understatement in any report of two percent (2%) or more, you shall, in addition to repayment of monies owed with interest, reimburse us for any and all costs and expenses connected with the inspection or audit, including, without limitation, the charges of attorneys and independent accountants and the travel expenses, room and board and compensation of our employees.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, franchisees may have to reimburse All County for audit expenses under certain conditions. Specifically, if an audit is triggered because the franchisee failed to provide required reports, records, or other information in a timely manner, the franchisee must cover the reasonable costs of the audit. These costs include charges for attorneys and independent accountants, as well as travel expenses, room and board, and compensation for All County's employees involved in the audit.
Additionally, if an audit reveals that the franchisee understated any payments in their reports to All County by two percent (2%) or more, the franchisee is responsible for reimbursing All County for all costs and expenses associated with the audit. This includes not only the repayment of the understated amounts with interest but also the charges for attorneys and independent accountants, travel expenses, room and board, and compensation for All County employees.
This policy means that All County franchisees must maintain accurate records and submit timely reports to avoid potential audit-related expenses. The two percent threshold is a critical point; even unintentional errors exceeding this level can lead to significant financial repercussions beyond simply correcting the initial underpayment. This underscores the importance of diligent bookkeeping and financial reporting practices for All County franchisees.