Is the Marketing Fund's financial statement prepared by Better Blend audited?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
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- F. Marketing Fund. We will administer the Marketing Fund (Section 5.3). We will prepare an unaudited annual financial statement of the Marketing Fund within 120 days of the close of our fiscal year and will provide the financial statement to you upon written request. (Section 9.3)
- G. Website. We will maintain a website for the Better Blend brand, which will include your business information. (Section 5.3)
Advertising
Our obligation. We will use the Marketing Fund only for marketing and related purposes and costs. Media coverage is primarily local. We use outside vendors and consultants to produce
advertising. We are not required to spend any amount of advertising in the area or territory where any particular franchisee is located.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 21–27)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the Marketing Fund's annual financial statement is not audited. Better Blend will prepare an unaudited annual financial statement within 120 days of the close of their fiscal year. This financial statement will be provided to franchisees upon written request.
Since the financial statements are unaudited, there is no independent verification of the Marketing Fund's financial activities. This means that the financial information provided is prepared solely by Better Blend without an external audit to ensure accuracy and compliance with accounting standards.
Prospective franchisees should be aware that the lack of an audit increases the risk that the financial statements may not present a completely accurate picture of the Marketing Fund's financial health. It is advisable for potential franchisees to carefully review these unaudited statements and ask Better Blend for clarification on any items of concern. This is a common practice for emerging franchise systems as a cost-saving measure, but it places a greater burden on franchisees to scrutinize the provided information.