Is Bang Cookies Franchisor considered a trustee or fiduciary of the Brand Development Fund?

According to Bang Cookies's 2024 Franchise Disclosure Document, the Brand Development Fund is explicitly not a trust, and Bang Cookies is not considered a trustee or fiduciary of the Brand Development Fund. Bang Cookies has the authority to deposit and maintain the Brand Development Fund fees in its general accounts, and these fees are not required to be segregated from other assets or accounts of the Franchisor.

This arrangement gives Bang Cookies significant control over the Brand Development Fund. Bang Cookies is not obligated to ensure that the expenditures from the fund in any geographic area are proportionate or equivalent to the contributions from Bang Cookies Shops operating in that area. Furthermore, Bang Cookies Shops owned by the Franchisor or its affiliates are not required to pay any Brand Development Fund Fee or contribute to the Brand Development Fund.

This setup means that franchisees do not have the typical protections associated with a trust or fiduciary relationship. Franchisees should be aware that Bang Cookies has broad discretion in how the Brand Development Fund is managed and spent, and there is no guarantee that the fund's activities will directly benefit any particular franchisee or geographic area. Prospective franchisees should carefully consider these factors and seek clarification from Bang Cookies regarding the operation and management of the Brand Development Fund.