Does Afuri Ramen Dumpling prepare annual financial statements for the Regional Advertising Fund?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
We will administer each Regional Advertising Fund in the same manner and upon the same terms and conditions as the Advertising Fee outlined in this Item 11. (Franchise Agreement, Section 2.5). There are no other written governing documents that govern any cooperative advertising program. No Regional Advertising Fund will be audited. However, we will prepare annual financial statements that you may obtain upon written request to us.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 27–34)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, annual financial statements are prepared for the Regional Advertising Fund. While the Regional Advertising Fund will not be audited, Afuri Ramen Dumpling will prepare annual financial statements.
As a franchisee, you may obtain these financial statements by submitting a written request to Afuri Ramen Dumpling. This provides a degree of transparency, allowing franchisees to review the financial activity of the Regional Advertising Fund, even though a formal audit is not conducted.
This arrangement balances the franchisor's control over the advertising funds with the franchisees' need to stay informed about how their contributions are being used. While franchisees do not have direct control over the fund's management or the ability to demand an audit, the availability of annual financial statements offers a means of oversight and accountability.