Is Apricot Lane required to have the annual accounting of the advertising fund prepared or audited by an independent certified public accountant?

According to Apricot Lane's 2025 Franchise Disclosure Document, an annual accounting of the advertising fund's operation must be made available to franchisees upon request. However, Apricot Lane is not required to have this accounting prepared or audited by an independent certified public accountant. If Apricot Lane chooses to retain an independent certified public accountant for this purpose, the fees and costs will be borne by the advertising fund.

This means that while franchisees have the right to review how the advertising funds are being used, there is no guarantee that the accounting will be verified by an independent third party unless Apricot Lane decides to do so. This could raise concerns about transparency and accountability in the management of the advertising fund.

Prospective Apricot Lane franchisees should consider the implications of this policy and may want to inquire about Apricot Lane's historical practices regarding the advertising fund's accounting. Understanding whether Apricot Lane typically uses an independent auditor, even though not required, can provide additional comfort. Franchisees might also want to discuss the possibility of requiring independent audits in the future, potentially through a franchise advisory council or similar mechanism.