factual

Who selects the independent public accountant for the Anago advertising fund's statement of operations?

Anago Franchise · 2025 FDD

Answer from 2025 FDD Document

A statement of operations of the Fund, if developed, will be prepared annually by an independent public accountant selected by Franchisor.

Upon reasonable request, Franchisor will provide Subfranchisor a copy of the annual statement of operations.

Source: Item 23 — RECEIPTS (FDD pages 62–298)

What This Means (2025 FDD)

According to Anago's 2025 Franchise Disclosure Document, if an advertising fund is developed, the independent public accountant who prepares the fund's statement of operations is selected by Anago itself. This statement of operations, if developed, will be prepared annually.

This means that Anago retains control over the financial oversight of the advertising fund. While franchisees may contribute to the fund, they do not have a direct say in choosing the accountant who reviews its financial statements. However, Anago will provide a copy of the annual statement of operations to the subfranchisor upon reasonable request.

This arrangement is fairly common in franchising, as franchisors typically manage advertising funds to ensure brand consistency and efficient resource allocation. However, franchisees should be aware of their right to request and review the fund's statement of operations to stay informed about how their contributions are being used.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.