Is the Fly To Fit Marketing Fund financial statement audited?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
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- F. Marketing Fund. We will administer the Marketing Fund (Section 5.5). 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 will maintain a website for the Fly To Fit brand, which will include your business information and telephone number. (Section 5.5)
Advertising
Our obligation. We will use the Marketing Fund only for marketing and related purposes and costs. Media coverage is primarily local. We use outside vendors and consultants to produce advertising. We are not required to spend any amount of advertising in the area or territory where any particular franchisee is located. We will maintain the brand website (which may be paid for by the Marketing Fund). We have no other obligation to conduct advertising.
Your own advertising material. You may use your own advertising or marketing material only with our approval. To obtain our approval, you must submit any proposed advertising or marketing material at least 14 days prior to use. If we do not respond, the material is deemed rejected. If you develop any advertising or marketing materials, we may use those materials for any purpose, without any payment to you.
Advertising council. We do not have an advertising council composed of franchisees. The franchise agreement does not give us the power to form an advertising council.
Local or Regional Advertising Cooperatives. We do not currently have any local or regional advertising cooperatives.
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. This financial statement will be provided to franchisees upon request.
As a new franchisor, Fly To Fit did not spend any money from the Marketing Fund in its most recently concluded fiscal year. If the marketing funds are not fully spent during the fiscal year, the remaining amount will be carried over to the following year for future use. The FDD specifies that the Marketing Fund will not be used to solicit new franchise sales.
Fly To Fit franchisees are required to contribute 1% of their gross sales per month to the Marketing Fund. Fly To Fit retains the right to have other franchisees contribute a different amount or at a different rate. It is important to note that outlets owned by Fly To Fit are not obligated to contribute to the Marketing Fund.
Fly To Fit will use the Marketing Fund only for marketing and related purposes and costs. Media coverage is primarily local. Fly To Fit uses outside vendors and consultants to produce advertising and is not required to spend any amount of advertising in the area or territory where any particular franchisee is located. Fly To Fit will maintain the brand website, which may be paid for by the Marketing Fund.