Are the Better Blend Marketing Funds audited?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
Marketing Fund. You and all other franchisees must contribute to our Marketing Fund. Your contribution is 1% of adjusted gross sales per week. We have the right raise contributions to 2% of adjusted gross sales per week. We reserve the right to have other franchisees contribute a different amount or at a different rate. Outlets that we own are not obligated to contribute to the Marketing Fund. We administer the Fund. The Fund is not audited. We will make unaudited annual financial statements available to you upon request.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 21–27)
What This Means (2024 FDD)
According to the 2024 Better Blend Franchise Disclosure Document, the Marketing Fund is not audited. However, Better Blend will prepare an unaudited annual financial statement of the Marketing Fund within 120 days of the close of their fiscal year. This financial statement will be provided to franchisees upon written request.
This means that while Better Blend franchisees contribute a percentage of their adjusted gross sales to the Marketing Fund, there is no independent audit to verify how the funds are being spent. Franchisees must rely on the unaudited financial statements provided by Better Blend, which may not offer the same level of assurance as an audited statement.
While the Better Blend Marketing Fund is not audited, the local or regional advertising cooperatives, if formed, will prepare annual financial statements. These statements will be available for review by Better Blend and the members of the cooperative. Better Blend has the power to require cooperatives to be formed, changed, dissolved, or merged.