Who bears the expense of an audit of DMA activities for Dq Treat?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, each DMA can request that an audit of its DMA activities be conducted at the expense of that DMA.
Source: Item 11 — UItem 11U***:** U**Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 37–47)
What This Means (2025 FDD)
According to the 2025 Dq Treat Franchise Disclosure Document, each Designated Market Area (DMA) bears the expense of an audit of its DMA activities. While Dq Treat provides franchisees with annual statements of contributions, expenditures, and balances for national, consolidated DMA, and individual DMA activities, a DMA can request a more in-depth audit.
This means that if the franchisees within a specific DMA want a detailed examination of how their sales promotion funds are being used at the DMA level, they will be responsible for covering the costs of that audit. This is an important consideration for franchisees, as it gives them some control over ensuring transparency and accountability in the use of their marketing funds within their specific region.
Prospective franchisees should consider the potential costs and benefits of requesting a DMA audit. While it could provide valuable insights into the effectiveness of regional marketing efforts, it also represents an additional expense that the DMA franchisees would need to cover collectively. Franchisees may want to discuss with other franchisees in their DMA whether they believe an audit would be worthwhile.