Is the statement of operations for the My Salon Suite Brand Building Fund audited?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) A statement of the operations of the Brand Building Fund will be prepared annually by Franchisor and shall be made available to Franchisee upon Franchisee's written request.
This statement of operations may be unaudited, but Franchisor reserves the right to use the Brand Building Fund Contributions to engage an accountant to audit the financial statements of the Brand Building Fund.
Source: Item 23 — RECEIPTS (FDD pages 95–230)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, a statement of operations for the Brand Building Fund will be prepared annually by My Salon Suite and made available to franchisees upon written request. This statement of operations may be unaudited. However, My Salon Suite retains the right to use Brand Building Fund contributions to engage an accountant to audit the financial statements of the Brand Building Fund.
This means that while an audit is not guaranteed, My Salon Suite has the option to have the Brand Building Fund's financial statements audited. As a potential franchisee, it's important to understand that the financial statements you receive may not have been reviewed by an independent auditor.
It would be prudent for a prospective My Salon Suite franchisee to inquire about the circumstances under which My Salon Suite would choose to have the Brand Building Fund audited and to request copies of past statements to assess the fund's financial management. Understanding the frequency and scope of any audits can provide additional assurance regarding the fund's transparency and proper use of franchisee contributions.