Who pays for the System Marketing Fund audit for Dermani Medspa?
Dermani_Medspa Franchise · 2025 FDDAnswer from 2025 FDD Document
We may have the System Marketing Fund audited annually, at the System Marketing Fund's expense, by an independent certified public accountant.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 31–43)
What This Means (2025 FDD)
According to Dermani Medspa's 2025 Franchise Disclosure Document, the System Marketing Fund bears the expense of its annual audit. Dermani Medspa may opt to have the System Marketing Fund audited each year by an independent certified public accountant.
This means that franchisee contributions to the System Marketing Fund are used to cover the costs of the audit, rather than Dermani Medspa directly paying for it. This is a common practice in franchising, where marketing funds are collectively used for the benefit of the entire system, including ensuring financial transparency through audits.
Prospective Dermani Medspa franchisees should be aware that a portion of their System Marketing Fee contributions will be allocated to cover audit expenses. While this ensures accountability, it also reduces the amount of funds available for actual marketing and advertising activities. Franchisees may want to inquire about the typical cost of these audits to understand the potential impact on the marketing fund's resources.