Are the Big Apple Bagels Marketing Funds audited?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
Marketing Expenditures: The Fund is not audited, but reports are available for review by the franchisee upon written request. In the year ending November 30, 2024, the BAB Systems Marketing Fund was expended in the following manner: 1.4% on creative, 47.5% on media, 21.6% on production, and 29.5% on administrative.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 42–53)
What This Means (2025 FDD)
According to Big Apple Bagels' 2025 Franchise Disclosure Document, the Marketing Fund is not audited. However, reports on the fund's expenditures are available for franchisee review upon written request.
For the year ending November 30, 2024, the Big Apple Bagels Systems Marketing Fund allocated its spending as follows: 1.4% on creative expenses, 47.5% on media, 21.6% on production, and 29.5% on administrative costs. This breakdown provides some transparency into how the fund is being utilized, even though it is not formally audited.
While the absence of an audit might raise concerns for some franchisees, the availability of expenditure reports offers a degree of oversight. A prospective Big Apple Bagels franchisee should request and carefully review these reports to understand how the marketing funds are being managed and allocated. It's also important to note that Big Apple Bagels has sole discretion over the marketing programs, and is not obligated to ensure that each franchisee benefits directly or proportionately from the Marketing Fund expenditures.