factual

Is All County obligated to contribute to the Advertising Fund?

All_County Franchise · 2025 FDD

Answer from 2025 FDD Document

We (or our affiliates) 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.

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, All County is not obligated to contribute to the Advertising Fund. While All County may choose to contribute to the fund at its discretion, it is not required to do so. The advertising fund is primarily funded by advertising and marketing fees paid by franchisees. Currently, franchisees contribute the greater of 1% of Gross Revenue or $195 monthly, with all franchisees contributing at the same percentage rate.

During the fiscal year ending December 31, 2024, the collected Advertising Fund monies were allocated as follows: 26% for website development services, 51.8% for client retention, and 22.2% for marketing and public relations. The fees contributed by franchisees are not held in a trust or fiduciary relationship but are managed in a commercial relationship for mutual economic benefit.

All County retains the right to spend more or less than the contributions to the Advertising Fund in any fiscal year and may carry over deficits or surpluses from year to year. While All County will provide an annual compiled statement of the Advertising Fund upon written request, it is not obligated to refund any unspent contributions if the Franchise Agreement is terminated or expires. This is a fairly typical arrangement in franchising, where the franchisor manages the advertising fund but does not guarantee specific outcomes or refunds.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.