Will Beverly Anns Cookie provide audited financial statements for the Brand Fund to franchisees?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
Because we do not have this fund audited, audited financial statements are not available to Beverly Ann's franchisees. We will provide to you each year an annual accounting for the Brand Fund that shows how the Brand Fund proceeds have been spent for the previous year upon written request (Franchise Agreement – Section 11).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEM, AND TRAINING (FDD pages 37–43)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, audited financial statements for the Brand Fund will not be available to franchisees. The document states that because Beverly Ann's Cookie does not have the fund audited, audited financial statements are not available to franchisees. However, Beverly Ann's Cookie will provide an annual accounting for the Brand Fund that shows how the Brand Fund proceeds have been spent for the previous year upon written request.
This means that while franchisees contribute to the Brand Fund, they will not receive independently audited financial statements to verify the fund's management. Instead, they will receive an annual accounting report directly from Beverly Ann's Cookie, detailing how the funds were spent.
Prospective franchisees should consider the implications of not receiving audited financial statements, as these provide an additional layer of independent verification. While an annual accounting report offers some transparency, it does not carry the same weight as an audit conducted by an independent accounting firm. Franchisees may want to inquire further about the processes and controls Beverly Ann's Cookie has in place to ensure the Brand Fund is managed responsibly.