Does Chocolate Fish Coffee provide financial statements for the Brand Fund?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
rocedures for our system.
- F. Brand Fund. 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)
- G. Website. We will maintain a website for the Chocolate Fish Coffee brand, which will include your business information and telephone number. (Section 5.5)
Advertising
Our obligation. We will use the Brand Fund only for marketing and related purposes and costs. Media coverage is primarily local. We use outside vendors and consultants to produce advertising. We are not required to spend any amount of advertising in the area or territory where any particular franchisee is located. We will maintain the brand website (which may be paid for by the Brand Fund). We have no other obligation to conduct advertising.
Your own advertising material. You may use your own advertising or marketing material only with our approval.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 20–27)
What This Means (2024 FDD)
According to the 2024 Chocolate Fish Coffee FDD, Chocolate Fish Coffee will administer a Brand Fund, which franchisees contribute 1% of their gross sales per week. Chocolate Fish Coffee will prepare an unaudited annual financial statement of the Brand Fund within 120 days of the close of their fiscal year. This financial statement will be provided to franchisees upon request.
It is important to note that the financial statements are unaudited, meaning they are not reviewed by an independent accounting firm. While Chocolate Fish Coffee is obligated to provide these statements, franchisees should be aware that the figures have not been independently verified.
Because Chocolate Fish Coffee is a new franchisor, they did not spend any money from the Brand Fund in their most recently concluded fiscal year. If funds are not spent in the fiscal year they accrue, the money will remain in the Brand Fund to be spent in the next year. No money from the Brand Fund is spent principally to solicit new franchise sales.