Under what circumstances does All County charge Auditing Costs?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Auditing Costs | Actual Costs | Reimbursement of our actual auditing costs | We assess this charge only for audits needed in the event you fail to comply with the Franchise Agreement, fail to allow full access to your records, or we find that you underreported your Gross Receipts by 2% or more for two or more reporting periods. |
Source: Item 6 — Other Fees (FDD pages 10–12)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, auditing costs are charged to franchisees under specific circumstances related to compliance and financial reporting accuracy. All County will assess auditing costs to a franchisee if an audit is needed because the franchisee failed to comply with the Franchise Agreement.
Another trigger for auditing costs is if the franchisee fails to allow All County full access to their records. Additionally, if All County finds that a franchisee has underreported their Gross Receipts by 2% or more for two or more reporting periods, the franchisee will be responsible for covering the auditing costs.
These auditing costs are the actual costs incurred by All County for conducting the audit, and the franchisee is required to reimburse All County for these expenses. This policy encourages franchisees to maintain accurate financial records and adhere to the terms of the Franchise Agreement to avoid incurring additional costs.