If a statement of operations is developed for the Anago advertising fund, who prepares it?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
The Fund is not required to be audited. However, a statement of operations of the Fund, if developed, will be prepared annually by an independent public accountant selected by us. Upon reasonable request, we will provide you a copy of the annual statement of operations.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–36)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, if a statement of operations is developed for the advertising fund, it will be prepared annually by an independent public accountant selected by Anago. While Anago is not required to have the fund audited, they will provide a copy of the annual statement of operations upon reasonable request.
This means that while franchisees contribute to the advertising fund, Anago maintains control over the selection of the accountant who prepares the statement of operations. This ensures that the financial reporting is handled by a qualified professional, providing a level of transparency and accountability.
Prospective franchisees should be aware that the advertising fund itself is not an asset of Anago, and Anago does not have a fiduciary obligation to subfranchisors or unit franchisees regarding the fund's administration. This highlights the importance of carefully reviewing the statement of operations to understand how the advertising funds are being utilized to support the Anago franchise system.