Who reviews the accounting for the funds used for Dq Treat national and DMA activities?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
The accounting for the funds used for DQ® national and DMA activities and materials are reviewed by an independent national accounting firm on an annual basis. This "review" consists principally of applying analytical procedures to the financial data and of making inquiries of persons responsible for financial and accounting matters. ADQ currently makes available to DQ® franchisees a copy of the annually prepared statements of contributions, expenditures and balance for the national (NMF), DMA (consolidated) and individual DMA in which your restaurant is located along with the Independent Accountants' Review Report. In addition, each DMA can request that an audit of its DMA activities be conducted at the expense of that DMA. Orange Julius® sales promotion program fees are accounted for by ADQ on an annual basis and a statement of contributions, expenditures and balance is prepared by ADQ and available for review. ADQ annually convenes a committee from the FAC to conduct their own review of the accounting for the marketing funds applicable to each system.
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 Dq Treat's 2025 Franchise Disclosure Document, an independent national accounting firm reviews the accounting for funds used in DQ national and DMA (Designated Market Area) activities and materials annually. This review primarily involves applying analytical procedures to financial data and making inquiries of individuals responsible for financial and accounting matters.
ADQ (American Dairy Queen) provides Dq Treat franchisees with annually prepared statements of contributions, expenditures, and balances for the national marketing fund (NMF), consolidated DMA, and the specific DMA in which the restaurant is located. These statements are accompanied by an Independent Accountants' Review Report. Additionally, each DMA has the option to request an audit of its activities, although the DMA would bear the expense of such an audit.
Furthermore, ADQ convenes a committee from the Franchise Advisory Council (FAC) annually to conduct their own review of the accounting for marketing funds applicable to each system. This layered approach, involving an independent accounting firm, detailed financial statements, and internal review by the FAC, aims to ensure transparency and accountability in the management of marketing funds contributed by Dq Treat franchisees.