Can Monicals Pizza require that the annual accounting of the marketing fund be audited?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
We may require that the annual accounting be audited by an independent certified public accountant at the expense of the marketing fund.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 20–27)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, Monicals Pizza may require that the annual accounting of the marketing fund be audited by an independent certified public accountant. The cost of this audit would be paid from the marketing fund itself, meaning that franchisees' contributions would cover the expense.
This is a fairly standard practice in franchising, as it provides transparency and accountability in how marketing funds are managed. Franchisees benefit from knowing that an independent expert has reviewed the fund's financials. It ensures that the funds are being used appropriately for advertising and promotional activities, as stated in the FDD.
However, franchisees should be aware that the cost of the audit will reduce the amount of money available for actual marketing and advertising efforts. While an audit provides assurance, it also represents an expense that could otherwise be used to directly promote the Monicals Pizza brand. Franchisees should consider this trade-off when evaluating the overall value and effectiveness of the marketing fund.