When will Bombs Away provide the financial statement to franchisees upon request?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
d) procedures for our system.
- F. Marketing Fund. 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)
- G. Website. We will maintain a website for the Bombs Away brand, which will include your business information and telephone number. (Section 5.5)
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.
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, there are two types of financial statements that Bombs Away will provide to franchisees upon request. The first is an unaudited annual financial statement of the Marketing Fund, which Bombs Away will prepare within 120 days of the close of their fiscal year. The second is unaudited annual financial statements related to the advertising fund, which Bombs Away will make available upon request.
It is important to note that the Marketing Fund financial statement is unaudited, meaning it has not been verified by an independent accounting firm. This is a common practice among franchisors, as a full audit can be expensive. However, it also means that the franchisee must rely on Bombs Away's internal accounting for the accuracy of the statement.
Prospective franchisees should inquire about the franchisor's fiscal year-end date to understand when the Marketing Fund financial statement will be available each year. Additionally, franchisees should carefully review these statements to ensure that the funds are being used appropriately and in accordance with the franchise agreement.