What is the reference in the All County Franchise Agreement related to the Advertising Fund?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 Franchise Agreement addresses the Advertising Fund in Articles 17.1 through 17.4. The document states that the Advertising Fund is not audited, and the Franchise Agreement does not mandate an audit at any time.
All County may administer an Advertising Fund to create advertising, public relations, market research, and promotional programs using various media. These efforts can be national, regional, or local, but their effectiveness in a franchisee's specific area is not guaranteed. The fund is supported by advertising fees from franchisees, which are currently the greater of 1% of Gross Revenue or $195 per month, with all franchisees contributing at the same percentage rate. For the fiscal year ending December 31, 2024, the collected Advertising Fund monies were spent as follows: 26% on website development services, 51.8% on client retention, and 22.2% on marketing and public relations.
All County is not obligated to contribute to the Advertising Fund, and franchisee contributions are not held in trust. The company may spend more or less than the contributions in any fiscal year and can carry over deficits or surpluses. Franchisees can request an annual compiled statement of the Advertising Fund. Unspent contributions are not refunded upon termination or expiration of the Franchise Agreement. In addition to contributing to the Advertising Fund, franchisees must spend a minimum of $3,000 initially and $1,500 monthly on local advertising and promotion. Franchisees must submit advertising materials to All County for approval, which will be given or denied within 15 days.