Is the Fly To Fit Marketing Fund audited?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
Advertising Fund. You and all other franchisees must contribute to our Marketing Fund. Your contribution is 1% of gross sales per month. We reserve the right to have other franchisees contribute a different amount or at a different rate. Outlets that we own are not obligated to contribute to the Marketing Fund. We administer the fund. The fund is not audited. We will make unaudited annual financial statements available to you upon request.
Because we are a new franchisor, we did not spend any money from the Marketing Fund in our most recently concluded fiscal year.
If less than all marketing funds are spent in the fiscal year in which they accrue, the money will remain in the Marketing Fund to be spent in the next year.
No money from the Marketing Fund is spent principally to solicit new franchise sales.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 23–30)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, the Marketing Fund is not audited. However, Fly To Fit will prepare an unaudited annual financial statement of the Marketing Fund within 120 days of the close of their fiscal year and will provide the financial statement to franchisees upon request.
Fly To Fit franchisees are required to contribute 1% of their gross sales per month to the Marketing Fund. It is important to note that Fly To Fit retains the right to have other franchisees contribute a different amount or at a different rate, and outlets that Fly To Fit owns are not obligated to contribute to the Marketing Fund.
Because Fly To Fit is a new franchisor, they did not spend any money from the Marketing Fund in their most recently concluded fiscal year. If less than all marketing funds are spent in the fiscal year in which they accrue, the money will remain in the Marketing Fund to be spent in the next year. No money from the Marketing Fund is spent principally to solicit new franchise sales.