Can Anago opt to have the advertising fund audited annually, and who pays for the audit?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
We may opt to have the Fund audited annually, at the Fund's expense, by an independent certified public accountant.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Anago has the option to have the advertising fund audited annually. If Anago chooses to conduct an audit, the expense of the audit is to be paid out of the advertising fund itself, meaning that franchisee contributions to the fund will cover the cost of the audit.
This is a fairly common practice in franchising, where advertising funds are often subject to audit to ensure proper use of franchisee contributions. The fact that Anago may opt to have the fund audited provides a degree of transparency and accountability regarding how advertising fees are managed.
Prospective Anago franchisees should be aware that while an annual statement of operations of the fund will be prepared and made available, an audit is not guaranteed. Franchisees may want to inquire about Anago's historical practices regarding advertising fund audits and under what circumstances they are typically conducted.