Regarding audits for Dq Treat, with whom are they required to communicate?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Source: Item 17 — The following paragraph is added to the end of Item 17 of the Disclosure Document: (FDD pages 70–378)
What This Means (2025 FDD)
According to the 2025 Dq Treat FDD, during an audit, Dq Treat is required to communicate with those charged with governance. This communication includes the planned scope and timing of the audit. It also involves sharing significant audit findings and certain internal control-related matters identified during the audit.
This requirement ensures transparency and accountability in the audit process. Those charged with governance, who are responsible for overseeing the strategic direction and accountability of the company, are kept informed about the audit's progress and any issues that arise. This allows them to take appropriate action to address any concerns and ensure the integrity of the company's financial reporting.
For a prospective Dq Treat franchisee, this indicates that the franchisor is subject to a thorough and transparent audit process. This can provide reassurance that the financial health and operational practices of the company are being carefully scrutinized. Franchisees can have confidence that any potential issues will be identified and addressed, which can help protect their investment and the overall stability of the franchise system.