What specific financial statements are included in the annual financial statement that a Chocolate Bash franchisee must provide?

According to the 2024 Chocolate Bash Franchise Disclosure Document, the franchisee does not have to provide an annual financial statement. However, CB Franchising, LLC will prepare an unaudited annual financial statement of the Marketing Fund within 120 days of the close of CB Franchising's fiscal year. This financial statement will be provided to the franchisee upon request.

This means that Chocolate Bash franchisees can request to see the annual financial statement of the Marketing Fund, which details how the money in the fund was used for marketing, advertising, and public relations efforts. The Marketing Fund is used for various activities such as advertising, promotions, sponsorships, website maintenance, social media, market research, and administrative expenses.

It is important to note that the financial statement is unaudited, meaning it has not been reviewed by an independent accounting firm. While this provides some transparency into the Marketing Fund's activities, franchisees should be aware that the statement has not been independently verified. Franchisees should consider requesting this statement annually to stay informed about how the Marketing Fund is being managed and utilized by Chocolate Bash.