What is the minimum Royalty amount that an All County franchisee must pay each Accounting Period?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
f each calendar month, we shall calculate the Royalty Fee due for the preceding month and may withdraw via EFT such amount and any other amounts due under this Agreement, including any advertising and marketing fees set forth under Article 17, directly from the designated account, unless we have agreed with you in writing to some other acceptable method of delivery of amounts due to us. All costs and expenses of establishing and maintaining such designated account, including transaction fees and wire transfer fees, shall be paid by you. You agree to maintain at all times sufficient funds in such designated bank accounts for such withdrawals.
3. ROYALTY AND OTHER FEES.
3.1. Royalty. You agree to pay us a non-refundable royalty ("Royalty) each calendar month (the "Accounting Period") during the Term of the Agreement in the amount of sev
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, franchisees must pay a royalty fee each calendar month, referred to as the Accounting Period. The standard royalty is 7% of Gross Revenue. However, All County franchisees must pay a minimum royalty of $200 each Accounting Period.
This means that even if 7% of an All County franchisee's Gross Revenue is less than $200 for a given month, the franchisee is still obligated to pay a $200 royalty fee. This minimum royalty payment ensures that All County receives a baseline income from each franchise unit, regardless of its monthly revenue.
The initial Accounting Period for which the minimum royalty must be paid begins 90 days following the Effective Date of the Franchise Agreement. For E-2 Investor Visa franchises, the initial Accounting Period begins 90 days following the official date that the E-2 Investor Visa application is approved by the United States of America. This delay provides a grace period for new franchisees to establish their business before the minimum royalty requirement takes effect.