What is the nature of the commercial relationship between All County and its franchisees regarding the Advertising Fund?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
may, in our sole business judgment, contribute to the Advertising Fund. There is no obligation for us to contribute to this fund. The fees contributed by Franchisees are not in a "trust," and are not held by us in any fiduciary or similar special relationship. No relationship is created beyond an ordinary commercial relationship for our mutual economic benefit.
In any fiscal year, we may spend an amount greater or less than the contributions to the Advertising Fund for that year. We may carry over deficits or surpluses from year to year. We will separately account for the Advertising Fund and will provide an annual compiled statement of the Advertising Fund upon your written request. We are under no obligation to refund any unspent contributions when the Franchise Agreement is terminated or expires.
The Advertising Fund will not be used to defray any of our general operating expenses, except for such reasonable salaries, administrative costs, travel expenses and overhead as we may incur in activities related to the administration and activities of the Advertising Fund and its programs. The Advertising Fund is not audited, and there are no restrictions under the terms of the Franchise Agreement that it must be audited at any time. (Franchise Agreement Articles 17.1. through 17.4.). The Advertising Fund will not be used to solicit the sale of franchises.
In addition to the your contribution to the Advertising Fund, you must spend not less than $3,000 initially for local advertising and promotion of your Franchise Business and on an ongoing basis each month you must spend not less than $1,500 for local advertising and promotion of your Franchise Business.
We will provide you with start-up marketing materials and templates. There is no guarantee of success from these materials. You may use any advertising or promotional materials you have developed after we have approved the materials. You must submit samples of all proposed advertising, promotional and marketing materials to us for approval before you use them and we will approve or disapprove of them within 15 days after our receipt of the proposed materials.
Presently, there are no advertising cooperatives or franchisee advertising councils involved in the advertising process, although there are no restrictions on our right to require advertising cooperatives or franchisee advertising councils to be formed, changed, dissolved or merged. Presently we do not have any existing policies in place regarding the formation of any franchisee advertising council, but if we establish one, we will communicate all the policies of the council to you through written updates to our Operations Manual or to our Methods of Operation. The written policies of any franchisee advertising council may include information on how members of
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 20–26)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, the relationship between All County and its franchisees regarding the Advertising Fund is a standard commercial relationship for mutual economic benefit, not a fiduciary one. All County franchisees contribute to the Advertising Fund through monthly fees, which are currently the greater of 1% of Gross Revenue or $195. All franchisees contribute at the same percentage rate. These funds are used for advertising, public relations, market research, and promotional programs, potentially including website development, client retention, and general marketing.
All County is not obligated to contribute to the Advertising Fund but may do so at its discretion. The fees paid by franchisees are not held in a trust or any special fiduciary relationship. All County retains the right to spend more or less than the contributions in any fiscal year and may carry over deficits or surpluses. While All County will provide an annual compiled statement of the Advertising Fund upon written request, the fund is not audited.
In addition to contributing to the Advertising Fund, All County franchisees must spend a minimum of $3,000 initially for local advertising and promotion and at least $1,500 each month on an ongoing basis. Franchisees must submit all advertising and promotional materials to All County for approval, which must be granted or denied within 15 days. While there are currently no advertising cooperatives or franchisee advertising councils, All County reserves the right to establish them in the future.
This arrangement means that franchisees have limited control over how the Advertising Fund is spent, and there is no guarantee that advertising efforts will directly benefit their specific geographic area. The lack of a fiduciary relationship and the absence of mandatory audits also mean that franchisees have less oversight of the fund's management. Prospective franchisees should consider these factors and the additional required local advertising expenditures when evaluating the overall cost and potential benefits of an All County franchise.