Is Expense Reduction Analysts required to audit the Marketing Fund?
Expense_Reduction_Analysts Franchise · 2025 FDDAnswer from 2025 FDD Document
We are not required to audit the Marketing Fund, but we will provide you with a basic accounting of the Marketing Fund from the prior year if you request such an accounting in writing within 120 days after the fiscal year end. (Section 15.3(5) of the Franchise Agreement)
Any unexpended Marketing Fund Contributions will be retained for use in connection with the Marketing Fund during the following year. We do not use Marketing Fund contributions to pay for advertising that solicits the sale of franchises.
During our fiscal year ending December 31, 2024, the Marketing Fund spent 63% of its available funds, with 37% of the funds available for future programs. Spending for 2024 was as follows: 41.15% of its funds on administration, 26.28% for media placement, 29.85% on tools, and 2.72% on production costs.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 26–36)
What This Means (2025 FDD)
According to Expense Reduction Analysts' 2025 Franchise Disclosure Document, Expense Reduction Analysts is not required to audit the Marketing Fund. However, if a franchisee requests it in writing within 120 days after the fiscal year end, Expense Reduction Analysts will provide a basic accounting of the Marketing Fund from the prior year.
For a prospective franchisee, this means that while there is no mandatory audit to ensure complete financial transparency of the Marketing Fund, they have the option to request an accounting of the fund's activities. This allows franchisees to gain some insight into how the Marketing Fund is being managed and utilized.
During the fiscal year ending December 31, 2024, the Marketing Fund spent 63% of its available funds. The remaining 37% was available for future programs. The spending breakdown for 2024 was as follows: 41.15% on administration, 26.28% for media placement, 29.85% on tools, and 2.72% on production costs. This information gives franchisees an overview of how the Marketing Fund's resources were allocated in the previous year, which can help them assess the value and effectiveness of the fund's initiatives.