How often can a Deck Medic franchisee request an unaudited accounting of the National Advertising Fund?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
The National Advertising Fund will be required to maintain unaudited financial records detailing its expenditures and will make available to you (no more frequently than one time in any 12-month period) an unaudited accounting of how the monies contributed to the National Advertising Fund were spent each year.
We are not required to segregate the National Advertising Fund from our general operating funds and we are not a fiduciary or trustee of the National Advertising Fund.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 24–29)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, franchisees can request an unaudited accounting of the National Advertising Fund, but no more than once in any 12-month period. This accounting will detail how the monies contributed to the National Advertising Fund were spent each year.
This means that while Deck Medic franchisees are required to contribute up to 2% of their monthly Gross Sales to the National Advertising Fund, they have a limited ability to review how those funds are being spent. The accounting provided is unaudited, meaning it has not been verified by an independent accounting firm.
Deck Medic does not segregate the National Advertising Fund from its general operating funds and is not considered a fiduciary or trustee of the National Advertising Fund. This arrangement gives Deck Medic considerable discretion in managing and spending the fund, so it is important for prospective franchisees to understand the implications and risks involved.