Can All County require franchisees to have reviewed or audited financial statements prepared by an independent third party?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
nd use of funds statements and a reviewed balance sheet for the Business as of the end of such fiscal year signed by you or your principal operating officer or operating partner.
- 18.1.5. Tax Returns. You agree to provide us, within ten (10) days after filing, exact copies of federal and state income and other tax returns of the Business and such other forms, records, books and other related information.
- 18.1.6. Credit Reports. You agree to allow us to obtain credits reports as deemed necessary during the period of this Agreement.
- 18.1.7. Maintenance of Records. You are required to maintain reports, records and financial statements as prescribed in the Operations Manual for your Business.
- 18.2. Verification. You agree to verify and sign each report and financial statement in the manner we prescribe. We have the right to disclose data derived from such reports without identifying you or the location of the Business. We also have the right to require you to have reviewed or audited financial statements prepared on an annual basis at your expense by an independent third party.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, All County has the right to require franchisees to have reviewed or audited financial statements. These statements must be prepared on an annual basis by an independent third party, and the franchisee is responsible for covering the expense.
All County also has the right to access the franchisee's computer systems, data, and software related to the business operations. This access can occur as often as All County deems appropriate, potentially even on a daily basis. Franchisees must provide all necessary passwords, logins, or security codes to facilitate this access and download of information.
Furthermore, All County retains the right to monitor or record any telephone conversations for quality assurance purposes. Franchisees must inform their employees about this monitoring practice. Franchisees are also obligated to verify and sign each report and financial statement as prescribed by All County. All County can disclose data derived from these reports without revealing the franchisee's identity or business location.