Is Cicis required to have the marketing fund statements audited?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
We will prepare an annual statement of the Fund's collections and expenses and will make this statement available to you, on your written request, within 120 days after our fiscal year end. We are not required to have the Fund statements audited.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 31–38)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Cicis is not required to have the marketing fund statements audited. However, Cicis will prepare an annual statement of the Fund's collections and expenses and will make this statement available to franchisees upon written request within 120 days after the fiscal year end.
This means that while Cicis franchisees can request a statement detailing where the marketing funds are being allocated, there is no guarantee that these statements will be audited by an independent third party. An audit would provide a higher level of assurance that the funds are being managed appropriately.
Prospective franchisees should consider the implications of this and perhaps discuss with existing franchisees their experiences in accessing and reviewing these statements. It would be prudent to inquire about the level of detail provided in these statements and whether franchisees have found them to be transparent and informative.