Where in the All County Franchise Agreement can I find details regarding royalty and other fees?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
Fee payable from you to us for the initial six (6) full Accounting Periods during the Term of the Agreement, as measured from the Effective Date. Thereafter, the Reconciliation Assistance Program Fee shall be Four Hundred Twenty Five Dollars ($425) each Accounting period, plus Forty Five Dollars ($45) per hour for any work we provide to you relating to your failure to comply with our required Methods of Operation concerning reconciling your client accounts. You acknowledge and agree that you must participate in the Reconciliation Assistance Program for not less than the initial eighteen (18) full Accounting Periods during the Term of the Agreement, as measured from the Effective Date. Thereafter at any time during the Term of the Agreement you may request in writing to us for the Franchised Business to be released from mandatory participation in the Reconciliation Assistance Program. At any time during the Term of the
Agreement, in our sole business judgment we elect or reject your request to be released from mandatory participation in the Reconciliation Assistance Program. In our sole business judgment we may require at any time during the Term of the Agreement that the Franchised Business's participation in the Reconciliation Assistance Program is mandatory, notwithstanding whether or not we previously accepted its request for release from participation in the Reconciliation Assistance Program. You acknowledge and agree that if the Franchise Business utilizes the services of a qualifying Broker of Record that is not an Owner of the Franchised Business, then the Franchised Business must participate in the Reconciliation Assistance Program until such time as an Owner of the Franchised Business is duly qualified as an authorized Broker of Record. The Reconciliation Assistance Program Fees shall be payable in the same manner and at the same time as the Royalty. We may increase the Reconciliation Assistance Program Fee and our hourly fee periodically during the Term of the Agreement, upon thirty (30) days prior written notice from us to you, provided however that any such increase shall not occur more than one (1) time in any period of twelve (12) consecutive Accounting Periods.
- 3.6. Professional Organization Fees. You acknowledge and agree that at all times during the Term of the Agreement, you must join and belong, in good standing, to such industry professional organizations that we designate, in our sole business judgment. You acknowledge and agree that you are responsible solely for paying any initial and ongoing professional organization fees ("Professional Organization Fees") that any such professional organization may charge in order to belong to such organization.
- 3.7. Royalty Fees Due Dates. The Royalty Fees are due and payable monthly on the fifth (5 th) calendar day of the week immediately following the end of the prior calendar month.
4. PERFORMANCE REQUIREMENTS.
- 4.1. Performance Standards. You agree that you will at all times faithfully, honestly and diligently perform your obligations hereunder, continuously exert your best efforts to promote and enhance the Business and not engage in any other business or activity that conflicts with your obligations to operate the Business in compliance with this Agreement.
- 4.2. Days of Operation. You acknowledge and agree that, as required by our Methods of Operation, the Business must operate the entire calendar year, unless otherwise approved in writing by us, and must be managed at all times by your Managing Owner or an owner or employee approved in writing by us.
- 4.3. Minimum Gross Revenue Requirements. You must attain or exceed each minimum requirement (the "Requirement") for Gross Revenue identified below for each respective specified period. Upon your first (1st) failure to attain the required Requirement, you may cure the failure by paying the Royalty Fee and Advertising Fund contribution and by making the local advertising expenditure required under this Agreement, all calculated with reference to the difference between the actual Gross Revenue of the Business for the specified period and the amount of the Requirement for that period. Upon your second (2nd) failure to attain the specified Requirement, then you shall be deemed to be in default under this Agreement and we may, in our sole business judgment, terminate this Agreement and all rights granted in this Agreement, with such termination effective immediately upon notice to you but without prior opportunity to cure the default. Otherwise we may elect to render all or any portion of the Territory as non-exclusive.
- 4.3.1.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, details regarding fees and payments are found in Section 2 of Item 23. This section outlines various fees franchisees may encounter during the term of the agreement. Specifically, it mentions Reconciliation Assistance Program Fees, which are paid in the same manner and at the same time as the Royalty Fees. All County may increase the Reconciliation Assistance Program Fee and their hourly fee periodically during the Term of the Agreement, upon thirty (30) days prior written notice from them to you, provided however that any such increase shall not occur more than one (1) time in any period of twelve (12) consecutive Accounting Periods. The Royalty Fees are due and payable monthly on the fifth (5 th) calendar day of the week immediately following the end of the prior calendar month. Also, franchisees are responsible for Professional Organization Fees to maintain membership in industry organizations designated by All County.
Additionally, the document specifies a transfer fee of $10,000 required for transferring the franchise, along with potential legal and administrative costs. This fee is waived for transfers among owners or first or second-degree relatives, although reimbursement for legal and administrative costs still applies. A Transferee Administrative Fee of $2,500 is also required from the transferee for administrative expenses related to the transfer. Furthermore, if a franchisee requests assistance from All County in transferring the business, a Transfer Assistance Fee of $25,000 is required.
Understanding these fee structures is crucial for prospective All County franchisees. The FDD provides a comprehensive overview of the various fees, their amounts, and the conditions under which they apply. Franchisees should carefully review these sections to fully understand their financial obligations and plan accordingly. It is also important to note the conditions under which certain fees may be increased or waived, as these can significantly impact the overall cost of operating the franchise.