Does Churchs Chicken audit the Ad Fund on an annual basis?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not audit the Ad Fund on an annual basis. We do prepare an annual statement of monies collected and costs incurred by the Ad Fund and can provide it to you on written request.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 35–43)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, the Ad Fund is not audited annually. However, Churchs Chicken does prepare an annual statement of monies collected and costs incurred by the Ad Fund, which is available to franchisees upon written request.
This means that while a formal audit isn't conducted each year, Churchs Chicken franchisees have the ability to request a detailed financial statement outlining the Ad Fund's income and expenses. This provides a degree of transparency, allowing franchisees to see how their contributions are being utilized for advertising and marketing purposes.
It is important for prospective franchisees to understand the difference between an audit and a financial statement. An audit involves an independent examination of the financial records, while a financial statement is prepared by the company itself. While the financial statement offers some insight, an audit provides a higher level of assurance regarding the accuracy and reliability of the information. Franchisees may want to consider requesting and reviewing these annual statements to stay informed about the Ad Fund's financial activities.