Will Endless Summer Sweets provide a financial statement for the Marketing Fund?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
commended) procedures for our system.
- F. Marketing Fund. We will administer the Marketing Fund (Section 5.5). Upon request, we will prepare an unaudited annual financial statement of the Marketing Fund within 120 days of the close of our fiscal year and will provide the financial statement to you upon request. (Section 9.3)
- G. Website. We may maintain a website for the Endless Summer Sweets restaurant brand, which will include your business information and telephone number. (Section 5.5)
Advertising
Local Advertising. You must spend three percent (3%) of your gross sales per month on
advertising and promotional activities during each calendar year, in such types as we approve or as described in the Operations Manual or otherwise in writing.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 18–25)
What This Means (2024 FDD)
According to Endless Summer Sweets' 2024 Franchise Disclosure Document, if the company establishes a marketing fund, they will provide franchisees with an unaudited annual financial statement. This statement will be available within 120 days of the close of Endless Summer Sweets' fiscal year and will be provided upon request from the franchisee.
This means that while franchisees contribute a percentage of their gross sales to the marketing fund, they also have the right to request transparency in how those funds are being managed and spent. The statement is unaudited, so it has not been reviewed by an independent accounting firm.
It is important to note that Endless Summer Sweets is not obligated to establish a marketing fund at this time. However, they reserve the right to do so with 30 days' notice. If a fund is established, franchisees will contribute one percent of their gross sales each week.