If the All County Advertising Fund has a deficit, can it borrow money?

According to All County's 2025 Franchise Disclosure Document, the Advertising Fund has the ability to borrow money to cover deficits. Specifically, All County may spend more than the aggregate contributions in any fiscal year, and to cover these deficits, the Advertising Fund may borrow from All County or other sources. This provides All County with flexibility in managing the advertising fund and ensuring that advertising efforts can continue even if current contributions are insufficient.

This borrowing ability could be beneficial for franchisees, as it allows for consistent advertising efforts, which can help to maintain brand awareness and attract customers. However, it also carries potential risks. If the Advertising Fund consistently operates at a deficit and relies heavily on borrowing, it could lead to financial instability or increased fees in the future to cover the debt.

All County also has the right to invest any surplus in the advertising fund for future use. 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. This could provide additional financial resources for advertising initiatives.

Prospective franchisees should inquire about the historical financial performance of the Advertising Fund, including any instances where borrowing was necessary, and the terms of such borrowing. Understanding the financial management of the Advertising Fund is crucial for assessing the long-term viability and potential costs associated with contributing to the fund.