Does the All County Franchise Agreement restrict the Advertising Fund from being audited?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
The Advertising Fund will not be used to defray any of our general operating expenses, except for such reasonable salaries, administrative costs, travel expenses and overhead as we may incur in activities related to the administration and activities of the Advertising Fund and its programs. The Advertising Fund is not audited, and there are no restrictions under the terms of the Franchise Agreement that it must be audited at any time. (Franchise Agreement Articles 17.1. through 17.4.). The Advertising Fund will not be used to solicit the sale of franchises.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 20–26)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the Franchise Agreement does not restrict the Advertising Fund from being audited. The document explicitly states that the Advertising Fund is not audited.
This means that All County franchisees do not have a contractual guarantee that the Advertising Fund will undergo an independent audit to verify its financial accuracy and compliance. While the FDD states that All County will provide an annual compiled statement of the Advertising Fund upon written request, this is not the same as a full audit conducted by an independent accounting firm.
For a prospective franchisee, this lack of a mandatory audit introduces a degree of risk. While All County commits to providing a compiled statement, the absence of an audit means there is less assurance that the fund is being managed with optimal transparency and accountability. It is important for potential franchisees to consider this when evaluating the overall financial management practices of the All County franchise system.