How can I request the annual accounting for the Extreme Art Studio Brand Fund?
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, you can request an annual, unaudited statement of Brand Fund collections and expenses by submitting a written request. This statement will detail how the Brand Fund's proceeds were spent in the previous year.
The Brand Fund is used for marketing, developing, and promoting the Extreme Art Studio system, marks, and businesses. Franchisees are required to contribute 1% of their gross sales to the Brand Fund. While Extreme Art Studio aims to use the fund to benefit all franchisees, they cannot guarantee that expenditures in any specific area will be proportionate to the contributions from that area.
Extreme Art Studio maintains control over the Brand Fund's programs, including creative concepts, materials, and their placement. The Brand Fund is accounted for separately from Extreme Art Studio's other funds and is not considered an asset of the company. Although not a trust, Extreme Art Studio holds the contributions for the benefit of the contributors and will use them only for the specified purposes. The Brand Fund may spend more or less than the total contributions in a given year, borrow to cover deficits, or invest any surplus for future use, with interest earned being used to pay costs before other assets.