Is the annual statement of the 1 800 Packouts Brand Fund audited?

According to the 2025 FDD, 1 800 Packouts prepares an annual statement regarding the Brand Fund. However, the statement is unaudited. This means that while 1 800 Packouts will track and report the monies collected and costs incurred by the Brand Fund, these figures will not be verified by an independent accounting firm. Franchisees can request this statement in writing.

Because the statement is unaudited, there is a risk that the figures presented may not be completely accurate or may not adhere to standard accounting practices. While this doesn't necessarily indicate wrongdoing, it does mean that franchisees must place a certain level of trust in 1 800 Packouts's internal accounting practices. It is common practice for larger franchise systems to have their advertising funds audited to ensure transparency and accountability.

Prospective 1 800 Packouts franchisees should consider the implications of an unaudited Brand Fund statement. They may want to inquire about the internal controls and procedures 1 800 Packouts has in place to ensure the accuracy of the financial reporting. It would be prudent to discuss this with existing franchisees to gauge their level of confidence in the Brand Fund's management and reporting.