How are the Reconciliation Assistance Program Fees paid to All County?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges and agrees that it shall pay all applicable Reconciliation Assistance Program Fees during any period during the Term of the Agreement in which Franchisee participates in the Program. Any Reconciliation Assistance Program Fees payable from Franchisee to All County during the Term of the Agreement shall payable following a specified Accounting Period and shall be due at the same time and in the same manner as the Royalty. Franchisee hereby acknowledges and agrees that All County may terminate the Reconciliation Assistance Program at any time, for any reason, in its sole business judgment, upon 30 days prior written notice from All County to Franchisee.
Franchisee, and each of the Guarantors identified in Appendix C to the Franchise Agreement, agrees that it shall, at all times, indemnify, exculpate, defend and hold harmless, to the fullest extent permitted by law, All County, its successor, assigns, affiliates and the respective officers, directors, shareholders, agents, representatives, independent contractors, servants, and employees of each of them (the "Indemnified Parties") from all losses and expenses incurred in connection with any action, suit, proceeding, claim, demand, investigation, or inquiry (formal or informal), or any settlement thereof, which arises out of or is based upon the Reconciliation Assistance Program. For purposes of this indemnification, "claims" includes all obligations, damages (actual, consequential or otherwise) and costs incurred in the defense of any claim against any of the Indemnified Parties, including, without limitation, reasonable accountants', arbitrators', attorneys' and expert witness fees, costs of investigation and proof of facts, court costs, other expenses of litigation, arbitration or alternative dispute resolution and travel expenses. All County has the right to defend any such claim at your expense. This indemnity will continue in full force and effect subsequent to and notwithstanding the expiration or termination of the Franchise Agreement.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, franchisees are required to pay Reconciliation Assistance Program Fees if they participate in the program. These fees are paid following a specified Accounting Period and are due at the same time and in the same manner as the Royalty payments. This means that the frequency and method used to pay royalties will also apply to the Reconciliation Assistance Program Fees.
This arrangement ensures that All County receives timely compensation for the reconciliation services they provide. It also streamlines the payment process for franchisees, as they can handle both royalty and Reconciliation Assistance Program Fee payments simultaneously.
All County also retains the right to modify these fees with prior written notice to the franchisee, and can terminate the Reconciliation Assistance Program at any time with 30 days written notice. Franchisees are also responsible for indemnifying All County against any losses or expenses related to the Reconciliation Assistance Program.