Is the Care Plus Medical Ucc Marketing Fund audited?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
Advertising Fund. You and all other franchisees must contribute to our Marketing Fund. Your contribution is 1% of gross sales per week. We reserve the right to have other franchisees contribute a different amount or at a different rate. Outlets that we own are not obligated to contribute to the Marketing Fund. We administer the fund. The fund is not audited. We will make unaudited annual financial statements available to you upon request.
Because we are a new franchisor, we did not spend any money from the Marketing Fund in our most recently concluded fiscal year.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 22–28)
What This Means (2024 FDD)
According to Care Plus Medical Ucc's 2024 Franchise Disclosure Document, the Marketing Fund is not audited. The document states that Care Plus Medical Ucc will prepare an unaudited annual financial statement of the Marketing Fund within 120 days of the close of their fiscal year and will provide the financial statement to franchisees upon request.
This means that while Care Plus Medical Ucc franchisees contribute 1% of their gross sales per week to the Marketing Fund, there is no independent audit to verify how the funds are being spent. Franchisees must rely on the unaudited financial statements provided by the franchisor.
It is important to note that because Care Plus Medical Ucc is a new franchisor, they did not spend any money from the Marketing Fund in their most recently concluded fiscal year. Prospective franchisees should inquire about the franchisor's plans for the Marketing Fund and how they intend to ensure transparency and accountability in the future.