During what hours can All County conduct inspections and audits of the Business?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 19.1. Right to Audit. Our designated agents and we have the right to, at any time during your regular business hours and without prior notice to you, to inspect and/or audit, or cause to be inspected and/or audited, all records relating to the Business and operation practices of the Business in order to verify that you are complying with this Agreement, Collateral Agreements, the Methods of Operation and that you are maintaining the uniformity and quality of the services associated with the Marks. We have the right to observe, photograph and videotape the operations of the Business for such consecutive or intermittent periods, as we deem necessary. We have the right to interview personnel and customers of the Business. We have the right to inspect and copy any books, records and documents relating to your operation of the Business. You agree to cooperate with any such inspection.
- 19.2. Audit Expense. In the event such inspection and/or audit is made necessary by your failure to furnish reports, supporting records or other information as herein required, or to furnish such items on a timely basis, you agree to reimburse us for the reasonable cost of such 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.
- 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, All County has the right to inspect and audit a franchisee's business at any time during the franchisee's regular business hours. These inspections can be conducted without prior notice. This includes the right to observe, photograph, and videotape the business operations, as well as interview personnel and customers. All County can also inspect and copy any books, records, and documents related to the business's operation.
This means that as an All County franchisee, you must be prepared for unannounced audits during your normal operating hours. It is crucial to maintain accurate and readily accessible records, as well as ensure that your business operations comply with All County's standards. Franchisees should also foster a cooperative environment with their staff to ensure smooth cooperation during any inspections or audits.
If an audit is required because a franchisee failed to provide necessary reports or information on time, the franchisee will be responsible for reimbursing All County for the costs of the audit. These costs can include attorney fees, accountant charges, and travel expenses for All County employees. Furthermore, if an audit reveals that payments have been understated by 2% or more, the franchisee will be required to pay the understated amount, plus interest, and also cover all costs associated with the audit.
This policy underscores the importance of accurate reporting and compliance with All County's operational standards. Franchisees should prioritize maintaining thorough and transparent records to avoid potential financial penalties and ensure a positive relationship with the franchisor. Understanding these audit procedures and potential financial implications is essential for any prospective All County franchisee.