Are the Advertising Fees for Afuri Ramen Dumpling audited?

According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, the Advertising Fees are not audited. However, a franchisee may obtain an accounting of the Advertising Fees and expenditures upon written request to Afuri Ramen Dumpling. This means that while there isn't a formal audit conducted by an independent third party, Afuri Ramen Dumpling will provide a record of how the advertising fees are being spent if a franchisee requests it.

Additionally, the Regional Advertising Funds are also not audited. However, Afuri Ramen Dumpling will prepare annual financial statements that franchisees may obtain upon written request. If 75% of the franchisees in an advertising region vote to contribute to a regional advertising program, all franchisees within that region are obligated to contribute. No region can require a contribution exceeding 2% of a franchisee's revenue.

While the absence of an audit might raise concerns for some franchisees, the availability of an accounting and annual financial statements provides a degree of transparency. This is somewhat less rigorous than a full audit, which would provide an independent verification of the advertising fund's financial activities. A prospective franchisee should consider the implications of this and perhaps discuss with existing franchisees how transparent and useful the provided accountings have been in practice.