What happens if an All County inspection reveals understated payments?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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. The foregoing remedies are in addition to our other remedies and rights under this Agreement and applicable law.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, if an inspection or audit reveals that payments have been understated in any report to All County, the franchisee must immediately pay the understated amount upon demand. Additionally, interest will be charged from the date the amount was originally due until it is paid, at the highest contract rate of interest permitted by law.
If the understatement in any report is two percent (2%) or more, the franchisee is responsible for repaying the monies owed with interest and must also reimburse All County for all costs and expenses connected with the inspection or audit. These costs may include charges for attorneys and independent accountants, as well as travel expenses, room and board, and compensation for All County employees involved in the audit.
These remedies are in addition to any other rights and remedies All County has under the Franchise Agreement and applicable law. This means that All County has several avenues for recourse if a franchisee underreports payments, including demanding immediate payment, charging interest, and seeking reimbursement for audit-related expenses. Franchisees should ensure accurate and timely reporting to avoid these penalties and maintain a good relationship with All County.