Is Deka Lash required to have an independent audit of the Brand Development Fund?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
amount of salaries and facilities, used to develop, research and administer the promotions, products and activities covered by the Brand Development Fees. By making a written request to us, you may obtain an annual unaudited financial statement of the Brand Development Fund, at the expense of the Brand Development Fund, available 120 days after our fiscal year end.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, Deka Lash is not required to have an independent audit of the Brand Development Fund. However, Deka Lash may choose to have the fund audited.
The FDD states that a franchisee may obtain an annual unaudited financial statement of the Brand Development Fund by making a written request. This financial statement is available 120 days after the fiscal year end and is at the expense of the Brand Development Fund.
This means that while Deka Lash is not obligated to conduct an independent audit, franchisees have the right to request and receive an unaudited financial statement to review the fund's activity. It is up to Deka Lash's discretion whether or not to have the Brand Development Fund audited by an independent party.