How often will Extreme Art Studio prepare a statement of Brand Fund collections and expenses?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
- 9.3.6 We will prepare an annual, unaudited statement of Brand Fund collections and expenses, and give you the statement upon written request.
The Brand Fund is not audited.
We will provide an annual accounting for the Brand Fund that shows how the Brand Fund proceeds have been spent for the previous year upon written request.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, Extreme Art Studio will prepare an annual, unaudited statement of Brand Fund collections and expenses. This statement will be provided to franchisees upon written request.
This means that as a franchisee, you will not automatically receive this statement; you must specifically ask for it in writing each year if you wish to review it. The statement is unaudited, so it has not been verified by an independent accounting firm.
While the FDD states that Extreme Art Studio will provide an annual accounting for the Brand Fund, it does not specify exactly when this statement will be available during the year. It is advisable for a prospective franchisee to inquire about the timeline for the statement's availability to allow for timely review and planning.