How can All County waive an obligation of the franchisee under the franchise agreement?
All_County Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.4. Deferrals or Reductions. We reserve the right to defer or reduce contributions of an ALL COUNTY® business franchisee and, upon thirty (30) days' prior written notice to you, to reduce or suspend your payment of Ad Fees to and suspend operations of the Advertising Fund for one or more periods of any length and to terminate (and if terminated to reinstate) the Advertising Fund.
Source: Item 23 — Receipts (FDD pages 43–157)
What This Means (2025 FDD)
According to All County's 2025 Franchise Disclosure Document, All County reserves the right to defer or reduce contributions of an All County business franchisee. Additionally, All County can reduce or suspend a franchisee's payment of Ad Fees and suspend operations of the Advertising Fund for one or more periods of any length. All County must provide thirty (30) days' prior written notice to the franchisee before reducing or suspending Ad Fee payments or suspending Advertising Fund operations. All County also has the right to terminate (and if terminated to reinstate) the Advertising Fund.
This means that All County has the discretion to provide some financial relief to franchisees by temporarily adjusting or eliminating advertising-related fees and contributions. This could be beneficial for franchisees facing financial difficulties or during periods of economic downturn when marketing budgets may need to be adjusted. However, franchisees should be aware that these changes are at All County's discretion and can be implemented or reversed with 30 days' notice.
It is important for prospective franchisees to understand the conditions under which All County might exercise these rights and how such changes could impact their business operations and marketing strategies. Franchisees should also inquire about the historical frequency and duration of such deferrals or reductions to better assess the potential impact on their business.