When does All County recognize revenue from the sales of individual franchises?

According to All County's 2025 Franchise Disclosure Document, revenue from the sales of individual franchises is recognized and earned for the initial non-recurring and non-refundable fee upon the execution of the agreement with the franchisee, provided this is allowable under applicable state laws. The initial franchise fee is generally recognized when all material services or conditions have been substantially performed.

This means that All County recognizes the franchise fee as revenue once the franchise agreement is signed and they have fulfilled their obligations to provide the services and support outlined in the agreement. This includes providing the initial website, software licensing fees, a detailed marketing plan, operations manual, necessary business forms, the business model, and ongoing training and support. The revenue recognition is contingent upon state laws, implying that All County must comply with specific state regulations regarding franchise sales and revenue recognition.

For a prospective All County franchisee, this indicates that the initial franchise fee paid is non-refundable and will be recognized as revenue by All County once the agreement is executed and the company has met its initial service obligations. This accounting practice is in line with ASC 606, which governs revenue recognition. Franchisees should be aware of the conditions under which All County recognizes this revenue, as it affects the company's financial reporting and may have implications for the franchisee's understanding of the financial relationship with All County.