Is Angry Chickz required to prepare audited financial statements for the Brand Fund?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Company is not required to prepare audited or other financial statements for the Brand Fund, or to provide Franchisee with an accounting of how funds were spent; however, (i) if Company prepares financial statements for the Brand Fund, Company will make the last year's financial statements available to Franchisee within a reasonable period of time after Franchisee's written request; and (ii) an annual unaudited summary of the contributions to, and expenditures of, the Brand Fund for the last year's activity will be made available to Franchisee within a reasonable period of time after Franchisee's written request.
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, Angry Chickz is not required to prepare audited financial statements for the Brand Fund. However, if Angry Chickz does prepare financial statements for the Brand Fund, they will make the last year's financial statements available to the franchisee within a reasonable time frame after receiving a written request.
Additionally, Angry Chickz will provide an annual unaudited summary of the contributions to, and expenditures of, the Brand Fund for the last year's activity. This summary will also be made available to the franchisee within a reasonable period after a written request.
This means that while franchisees are not automatically entitled to audited financials, they can request and receive both the last year's financial statements (if they exist) and an unaudited summary of the Brand Fund's financial activity. This provides some level of transparency regarding how the Brand Fund is managed and spent, even without a formal audit.