How can a Chocolate Fish Coffee franchisee obtain the Brand Fund financial statement?

According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, the franchisor will prepare an unaudited annual financial statement of the Brand Fund within 120 days of the close of their fiscal year. A Chocolate Fish Coffee franchisee can obtain this financial statement by requesting it from the franchisor.

This means that as a Chocolate Fish Coffee franchisee, you have the right to request and receive an annual financial statement detailing the Brand Fund's activities. The Brand Fund is supported by franchisee contributions of 1% of gross sales per week. This provides transparency regarding how the fund, which is used for marketing and related purposes, is being managed and spent.

It is important to note that the financial statement is unaudited, meaning it has not been independently verified by a third-party accounting firm. While this is not uncommon for smaller franchise systems, franchisees should carefully review the statement and ask the franchisor for clarification on any items of concern. Understanding how the Brand Fund is used can help franchisees assess the value they are receiving from their contributions.