When are All County royalty revenues payable, relative to when they are earned?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
Revenues from royalties are earned each calendar month as a percentage of gross revenues and are payable the following month. The Company recognizes income for financial statement purposes and records the receivable in the accounting period it was earned.
Source: Item 22 — Contracts (FDD page 43)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, royalty revenues are earned each calendar month and are payable to All County the following month. This means that All County franchisees must calculate and remit their royalty payments shortly after the end of each month, based on the gross revenues they generated during that prior month.
This payment schedule is a standard practice in the franchise industry, allowing franchisors to maintain consistent cash flow and support ongoing services to franchisees. For All County, this consistent revenue stream likely helps fund the ongoing training and support mentioned in Note 1, as well as the National Advertising Fund detailed in the financial statements.
Prospective All County franchisees should be aware of this monthly royalty payment obligation and ensure they have systems in place to accurately track gross revenues and make timely payments to All County. Failure to do so could result in penalties or even termination of the franchise agreement.