As an All County franchisee, what is my obligation regarding contribution to the Advertising Fund?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
om selling or transferring any of the accounts or clients of the Business to anyone except to us or to one of our designees or to another ALL COUNTY® business that has been approved in writing by us.
- 16.1.3. Recruiting. You will not recruit or hire any person who is our employee or the employee of any other ALL COUNTY® business without obtaining the prior written permission of that person's employer.
17. MARKETING.
17.1. Advertising Fund. We may establish an advertising fund ("Advertising Fund") for such advertising, marketing and public relations programs and materials as we deem 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; employing advertising and/or public relations agencies to assist therein; purchasing promotional items; and providing promotional and other marketing materials and services to the businesses operating under the System. The Advertising Fund will furnish you with samples of advertising, marketing formats, promotional formats and other materials at no additional cost to you when we deem appropriate. Multiple copies of such materials will be furnished to you at our direct cost of producing them plus any related shipping, handling and storage charges.
- 17.2. Accounting of Advertising Fund. The Advertising Fund will be accounted for separately from our other funds and 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 operation of the Advertising Fund and its programs. This may include, without limitation, conducting market research, preparing advertising promotion and marketing materials, and collecting and accounting for contributions to the Advertising Fund.
- 17.2.1. Expenditure of Advertising Fund. We may spend, on behalf of the Advertising Fund, in any fiscal year, an amount that is greater or less than the aggregate contribution of all ALL COUNTY® businesses to the Advertising Fund in that year and the Advertising Fund may borrow from us or others to cover deficits or invest any surplus for future use.
- 17.2.2. Interest Earned. All interest earned on monies contributed to the Advertising Fund will be used to pay advertising costs before other assets of the Advertising Fund are expended.
- 17.2.3. Reporting. We will prepare an annual compiled statement of monies collected and costs incurred by the Advertising Fund and furnish the statement to you upon written request.
- 17.2.4.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, franchisees are required to contribute to the Advertising Fund. Each accounting period, which is defined as one calendar month, franchisees must contribute the greater of one percent of their gross revenue or $195. This contribution, referred to as the "Ad Fee," is payable monthly, coinciding with royalty payments. The purpose of the Advertising Fund is to enhance the image of the All County system through various marketing and promotional activities. All County has control over the programs financed by the Advertising Fund, including creative concepts, market placement, and media allocation.
All County may use the Advertising Fund to cover costs related to advertising, marketing, public relations, and promotional programs. These activities include radio, cable television, and print advertising campaigns, website maintenance, direct mail advertising, marketing surveys, and the employment of advertising agencies. Franchisees will receive samples of advertising and marketing materials at no additional cost when All County deems it appropriate, with multiple copies available at the franchisee's expense for production and shipping.
In addition to the Ad Fee, All County franchisees must spend a minimum amount on local advertising and promotion. Before opening or within 60 days of opening their business, franchisees must spend at least $3,000 on local advertising and promotion. Furthermore, each month during the term of the agreement, franchisees are required to spend no less than $1,500 on local advertising and promotion. Franchisees must provide proof of these expenditures, and All County may review their records to verify compliance. If a franchisee fails to spend the required amount, All County may require them to pay the unexpended funds into the Advertising Fund.
All County retains the right to defer or reduce franchisees' contributions to the Advertising Fund or even suspend the fund's operations with thirty days' written notice. If the Advertising Fund is terminated, the remaining funds will be distributed to franchisees based on their contributions over the preceding three months. While franchisees are required to contribute to both the national Advertising Fund and local advertising, All County makes no guarantee that advertising expenditures in any area will be proportional to the contributions from All County businesses in that area, or that any franchisee will directly benefit from the advertising in proportion to their Ad Fees.