What general operating expenses is the All County Advertising Fund prohibited from defraying?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the Advertising Fund is maintained separately from All County's other funds and cannot be used for the company's general operating expenses. However, the fund can cover reasonable salaries, administrative costs, travel expenses, and overhead that All County incurs while administering and operating the Advertising Fund and its associated programs.
These permitted expenses can include conducting market research, creating advertising, promotional, and marketing materials, and managing the collection and accounting of Advertising Fund contributions. This means that while the Advertising Fund is primarily for marketing and advertising activities to benefit All County franchisees, All County can use the fund to cover its direct costs of administering the fund itself.
This arrangement is fairly typical in franchising, where advertising funds are common. Franchisees should ensure they understand exactly what expenses the franchisor can charge to the fund, and that the franchisor provides a clear accounting of how the fund is spent. All County franchisees have the right to request an annual compiled statement of monies collected and costs incurred by the Advertising Fund.