Is participation in the Reconciliation Assistance Program mandatory for All County franchisees?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
g and maintenance fee ("Ongoing Website Hosting and Maintenance Fee") for use and maintenance of our website and online systems. The Ongoing Website Hosting and Maintenance Fee presently is Sixty Five Dollars ($65) per Accounting Period. We may increase the Ongoing Website Hosting and Maintenance Fee periodically during the Term of the Agreement, upon thirty (30) days prior written notice from us to you, provided however that any such increase shall not occur more than one (1) time in any period of twelve (12) consecutive Accounting Periods. The Software License Fee shall be payable at the same time and in the same manner as the Royalty.
- 3.5. Reconciliation Assistance Program Fee. You acknowledge and agree that you must participate in our mandatory Reconciliation Assistance Program. As a condition of your participation in the Reconciliation Assistance Program, you must execute Appendix E to this Agreement. You acknowledge and agree that that you shall pay us any applicable fees for our administration of the Reconciliation Assistance Program (the "Reconciliation Assistance Program Fee"). We shall provide the Reconciliation Program services to you with no Reconciliation Assistance Program Fee payable from you to us for the initial six (6) full Accounting Periods during the Term of the Agreement, as measured from the Effective Date. Thereafter, the Reconciliation Assistance Program Fee shall be Four Hundred Twenty Five Dollars ($425) each Accounting period, plus Forty Five Dollars ($45) per hour for any work we provide to you relating to your failure to comply with our required Methods of Operation concerning reconciling your client accounts. You acknowledge and agree that you must participate in the Reconciliation Assistance Program for not less than the initial eighteen (18) full Accounting Periods during the Term of the Agreement, as measured from the Effective Date. Thereafter at any time during the Term of the Agreement you may request in writing to us for the Franchised Business to be released from mandatory participation in the Reconciliation Assistance Program. At any time during the Term of the
Agreement, in our sole business judgment we elect or reject your request to be released from mandatory participation in the Reconciliation Assistance Program. In our sole business judgment we may require at any time during the Term of the Agreement that the Franchised Business's participation in the Reconciliation Assistance Program is mandatory, notwithstanding whether or not we previously accepted its request for release from participation in the Reconciliation Assistance Program. You acknowledge and agree that if the Franchise Business utilizes the services of a qualifying Broke
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, participation in the Reconciliation Assistance Program is mandatory for franchisees. Specifically, franchisees must participate for at least the first 18 full accounting periods from the franchise's effective date. After this initial period, a franchisee can request in writing to be released from mandatory participation. However, All County retains the right to reject this request or to reinstate mandatory participation at any time based on their business judgment.
As part of participating in the Reconciliation Assistance Program, franchisees must sign Appendix E of the franchise agreement. Franchisees are also responsible for paying fees associated with the program. For the first six full accounting periods, no Reconciliation Assistance Program Fee is charged. After this initial period, the fee is $425 per accounting period. Additionally, a fee of $45 per hour is charged for any work required due to the franchisee's failure to comply with All County's operational methods for reconciling client accounts.
It's important to note that if the franchise utilizes the services of a qualifying Broker of Record who is not an owner of the franchised business, participation in the Reconciliation Assistance Program is mandatory until an owner becomes a duly qualified Broker of Record. All County also has the right to increase the Reconciliation Assistance Program Fee and their hourly fee, but they must provide 30 days' prior written notice, and increases cannot occur more than once in any 12 consecutive accounting periods. This program ensures that franchisees adhere to All County's financial and operational standards, but it also represents an ongoing cost that franchisees need to factor into their financial planning.