Is the Azal Coffee marketing fund report audited?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
We will submit to you, on request, an annual report of the receipts and disbursements of the marketing fund, unaudited, prepared by our management, and provided in the manner we specify.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–36)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the annual report of receipts and disbursements of the marketing fund is unaudited. The report is prepared by Azal Coffee's management and provided in a manner they specify.
This means that while Azal Coffee will provide a report on how the marketing funds are spent, this report will not be verified by an independent accounting firm. As a result, franchisees must rely on the franchisor's internal accounting practices for the accuracy of the report.
This is a common practice in the franchise industry, but it's important for prospective franchisees to understand that the financial information provided is not independently verified. Franchisees have the right to request this report, allowing them to review how their contributions to the marketing fund are being utilized by Azal Coffee.