Are the financial statements of the All Team marketing fund account audited?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
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, the franchisor, ATFC, will maintain the marketing fund. ATFC is required to maintain separate bookkeeping accounts for the fund. Upon a franchisee's request, ATFC will provide unaudited financial statements of the account.
This means that All Team franchisees are entitled to receive financial statements related to the marketing fund. However, these financial statements are not audited, meaning they have not been examined and verified by an independent accounting firm.
As the financial statements are unaudited, there is a risk that the information presented may not be entirely accurate or complete. A prospective franchisee may want to inquire about the frequency and scope of internal reviews of the marketing fund to gain more comfort.