What interest rate will All County charge on understated payments revealed during an inspection?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
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. In addition to the understated amount, All County will charge interest from the date the amount was due until it is paid. The interest rate applied will be the highest contract rate of interest permitted by law.
Furthermore, if the understatement in any report is two percent (2%) or more, the franchisee is responsible for repaying the monies owed with interest and reimbursing All County for all costs and expenses connected with the inspection or audit. These costs may include charges for attorneys, independent accountants, travel expenses, room and board, and compensation for All County's employees.
This policy ensures that All County franchisees maintain accurate reporting and timely payments. The interest charge and potential reimbursement of audit expenses serve as a deterrent against underreporting. Prospective franchisees should be aware of these financial implications and ensure they have systems in place for accurate financial reporting to avoid penalties.