What is the deadline for Chocolate Fish Coffee to provide the Brand Fund's annual financial statement?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
We will administer the Brand Fund (Section 5.5). We will prepare an unaudited annual financial statement of the Brand 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 20–27)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, the company will prepare an unaudited annual financial statement of the Brand Fund within 120 days of the close of their fiscal year. Upon request, Chocolate Fish Coffee will provide franchisees with this financial statement.
This means that franchisees can request to see how the Brand Fund, which is funded by franchisee contributions, is being managed. The Brand Fund is used for marketing and related costs. Franchisees contribute 1% of gross sales per week to the Brand Fund.
It is important to note that the financial statement is unaudited, meaning it has not been checked by an independent accounting firm. While Chocolate Fish Coffee is obligated to provide the statement, it is up to the franchisee to review and interpret the document. Franchisees should mark their calendars for 120 days after the close of Chocolate Fish Coffee's fiscal year to follow up on receiving this statement.