Where are the sums received for the All Team marketing fund maintained?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISEE acknowledges that the Fund is intended to maximize brand recognition, acceptance and use of the System, and that ATFC is not obligated, in administering the Fund, to make expenditures for FRANCHISEE which are equivalent or proportional to FRANCHISEE's contribution, or to ensure that any particular franchisee benefits directly or pro rata from expenditures made by the Fund. The Fund, all contributions thereto, and any earnings thereon shall be used exclusively to meet any and all costs of maintaining, administering, directing, conducting, and preparing advertising, marketing, public relations and/or promotional programs and materials and any other activities which ATFC believes will enhance the System. All sums received for the Fund shall be maintained in an account separate from the other monies of ATFC and shall be used only as provided herein. ATFC shall maintain separate bookkeeping accounts for the Fund. ATFC shall provide unaudited financial statements of the account upon request by FRANCHISEE.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, all sums received for the marketing fund are maintained in a separate account from All Team's other monies. These funds are to be used exclusively for costs related to maintaining, administering, directing, and conducting advertising, marketing, public relations, promotional programs, materials, and any other activities All Team believes will enhance the All Team system.
All Team is required to maintain separate bookkeeping accounts for the fund. Upon request, All Team will provide franchisees with unaudited financial statements of the account.
This arrangement ensures that the marketing funds are used solely for their intended purpose, providing some transparency to franchisees regarding how their contributions are being spent to promote the All Team brand. However, the financial statements provided are unaudited, so franchisees may want to consider requesting audited statements for greater assurance.