Under what circumstances does All County charge auditing costs to a franchisee?
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, franchisees may incur auditing costs under specific circumstances related to compliance and financial reporting accuracy. All County will assess auditing costs to a franchisee only if an audit is needed because the franchisee failed to comply with the Franchise Agreement, failed to allow full access to their records, or if the franchisee underreported their Gross Receipts by 2% or more for two or more reporting periods.
The cost for these audits will be the actual costs incurred by All County. This means the franchisee will be responsible for reimbursing All County for the full expense of the audit. This policy incentivizes franchisees to maintain accurate financial records and adhere to the terms of the Franchise Agreement.
For a prospective All County franchisee, this highlights the importance of maintaining meticulous records and operating in full compliance with the franchise agreement. Failure to do so could result in unexpected audit costs, impacting profitability. It is crucial to understand the specific requirements for financial reporting and record-keeping outlined in the Franchise Agreement to avoid triggering an audit and the associated expenses.