Are the Dryject Marketing Fund's income and expense statements audited?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
Marketing Fund Administration. The Marketing Fund is administered by us and may, in the future, at our option, be established as a not-for-profit corporation. The Marketing Fund will prepare internally unaudited income and expense statements on an annual basis. Income statements, expense statements and an accounting of advertising expenditures will be available to any franchisee upon written request. Excess funds not spent in any given fiscal year will be carried forward to the next fiscal year. The Marketing Fund is intended to remain in existence, however we reserve the right to terminate the Marketing Fund but only after all monies have been spent for advertising and promotion.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 26–33)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the income and expense statements for the Marketing Fund are not audited. The FDD states that Dryject will prepare internally unaudited income and expense statements on an annual basis. These statements, along with an accounting of advertising expenditures, will be available to franchisees upon written request. Any excess funds not spent in a given fiscal year will be carried forward to the next fiscal year.
This means that prospective Dryject franchisees should be aware that the financial records of the Marketing Fund are not subject to independent verification. While Dryject commits to providing income and expense statements, the absence of an audit may raise concerns about the accuracy and completeness of the reported information. Franchisees have the right to request and review these statements, allowing them to monitor how the Marketing Fund is being managed.
In the franchise industry, it is not uncommon for marketing funds to be unaudited, particularly for smaller or newer franchise systems. However, larger and more established franchise systems often provide audited financial statements for their marketing funds to ensure transparency and accountability. The lack of an audit does not necessarily indicate mismanagement, but it does place a greater burden on franchisees to scrutinize the provided financial information and ask questions about any discrepancies or concerns.
Prospective Dryject franchisees should consider the implications of unaudited financial statements for the Marketing Fund and factor this into their decision-making process. They may want to inquire about the controls and procedures Dryject has in place to ensure the accuracy of the financial information and how Dryject addresses any franchisee concerns regarding the Marketing Fund's expenditures.