What was the balance for Endless Summer Sweets as of April 30, 2023?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor may accumulate funds in the Marketing Fund and carry the balance over to subsequent years.
If the Marketing Fund operates at a deficit or requires additional funds at any time, Franchisor may loan such funds to the Marketing Fund on reasonable terms.
Franchisor will prepare an unaudited annual financial statement of the Marketing Fund within 120 days of the close Franchisor's fiscal year and will provide the financial statement to Franchisee upon request.
Source: Item 23 — RECEIPTS (FDD pages 39–125)
What This Means (2024 FDD)
Based on the 2024 Franchise Disclosure Document, information regarding the specific balance of the Marketing Fund for Endless Summer Sweets as of April 30, 2023, is not provided. However, the FDD does state that the Franchisor may accumulate funds in the Marketing Fund and carry the balance over to subsequent years. It also indicates that the Franchisor will prepare an unaudited annual financial statement of the Marketing Fund within 120 days of the close of the Franchisor's fiscal year and will provide the financial statement to the Franchisee upon request.
For a prospective Endless Summer Sweets franchisee, this means that while the exact balance as of April 30, 2023, is not disclosed in the FDD, the franchisee has the right to request the annual financial statements of the Marketing Fund to understand its financial status. This provides a mechanism for franchisees to stay informed about the Marketing Fund's financial health and how their contributions are being managed.
It is important for potential franchisees to request and review these financial statements to assess the effectiveness and transparency of the Marketing Fund. Understanding the fund's balance, income, and expenses can help franchisees evaluate the value they are receiving from their contributions and make informed decisions about their investment in the franchise.