When will Bombs Away prepare the annual financial statement of the Marketing Fund?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
We will administer the Marketing Fund (Section 5.5). 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 request. (Section 9.3)
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 18–23)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, Bombs Away will prepare an unaudited annual financial statement of the Marketing Fund within 120 days of the close of their fiscal year. This statement will be provided to franchisees upon request.
This means that franchisees can request to see how the Marketing Fund, which is funded by a contribution of 2% of gross sales per month from franchisees, is being managed. The Marketing Fund is used for marketing and related costs. However, outlets that Bombs Away owns are not obligated to contribute to the Marketing Fund.
It is important to note that the financial statement is unaudited, meaning it has not been verified by an independent accounting firm. While this is permissible, franchisees may want to consider requesting a copy of the financial statement to understand how the fund is being managed and whether the expenses align with the intended purpose of marketing and related costs.