How often can a Bang Cookies franchisee request an accounting of the Brand Development Fund?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
The Brand Development Fund will maintain unaudited financial records detailing its expenditures and will make available to you, no more frequently than one time in any 12 month period, an unaudited accounting of how monies contributed to the Brand Development Fund were spent each year.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 29–36)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, a franchisee can request an unaudited accounting of the Brand Development Fund once per year. Specifically, the FDD states that Bang Cookies will make available to franchisees an unaudited accounting of how the Brand Development Fund monies were spent each year, but no more frequently than one time in any 12-month period.
This means that while Bang Cookies collects a weekly contribution not to exceed 2% of weekly Gross Sales for the Brand Development Fund, franchisees are limited in how often they can formally review how those funds are being spent. The Brand Development Fund is used for various marketing and development activities that Bang Cookies deems to be in the best interest of the franchisees and the System.
It is important to note that the financial records provided are unaudited, meaning they have not been verified by an independent accounting firm. Additionally, Bang Cookies is not required to segregate the Brand Development Fund from its general operating funds and is not considered a fiduciary or trustee of the Brand Development Fund. This arrangement gives Bang Cookies significant discretion in managing and allocating the Brand Development Fund, so franchisees should be aware of the limitations on their oversight and control.