Is the Angry Chickz Brand Fund considered a trust?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Marketing materials may be from an in-house advertising department or national,
regional or local advertising agencies, or other sources. We need not make expenditures that are equivalent or proportionate to your contributions. We need not ensure that any particular franchisee benefits directly or proportionately from fund advertising. The fund is not a trust and we are not a fiduciary.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 26–33)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the Brand Fund is not considered a trust, and Angry Chickz is not a fiduciary. This means that Angry Chickz has considerable discretion in how the fund is managed and spent.
The FDD specifies that Angry Chickz is not required to make expenditures equivalent or proportionate to a franchisee's contributions, nor must they ensure that any particular franchisee benefits directly or proportionately from the fund's advertising. This indicates that while franchisees contribute to the Brand Fund, there is no guarantee of a direct return on investment for each individual franchisee.
Angry Chickz directs all uses of the fund and controls the creative concepts, materials, media used, media placement, and allocation. While the fund is intended to be perpetual, Angry Chickz can terminate it once all the money has been spent on advertising and promotional purposes. This gives Angry Chickz significant control over the fund's assets and its ultimate disposition.