Is the Bft Franchisor required to audit the Fund?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor will not be required to audit the Fund, but will provide an annual accounting of the Fund at the written request of Franchisee that is made 120 days after the fiscal year at issue. All interest earned on monies contributed to, or held in, the Fund will be remitted to the Fund and will be subject to the restrictions of the relevant franchise agreements.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the franchisor is not required to audit the fund. However, Bft will provide an annual accounting of the fund if a franchisee makes a written request 120 days after the fiscal year in question.
This means that while Bft franchisees contribute to the fund, they do not have a guaranteed audit of how the money is spent. Instead, they must specifically request an accounting statement each year. This is different from some franchise systems where an independent audit is performed annually as a matter of course.
It is important for prospective Bft franchisees to understand that the fund does not need to be segregated from Bft's other funds, but it will be accounted for separately. All taxes related to the fund are the fund's responsibility. Interest earned on the fund will be remitted back into the fund and subject to the franchise agreement restrictions.