Can Baya Bar use the Brand Fund to pay for reasonable administrative costs?

According to Baya Bar's 2024 Franchise Disclosure Document, Baya Bar can use the Brand Fund to cover reasonable administrative costs. Specifically, the Brand Fund can be used for reasonable administrative costs and overhead that Baya Bar may incur while administering and directing the Brand Fund.

This means that while the primary purpose of the Brand Fund is for advertising and marketing, Baya Bar is allowed to use a portion of it to cover the costs associated with managing the fund itself. This could include salaries for staff who administer the fund, office supplies, or other related overhead expenses. However, the Brand Fund cannot be used to defray any of Baya Bar's general operating expenses outside of these specific administrative costs.

It is important to note that the Brand Fund must be operated solely as a conduit for collecting and expending advertising contributions for the Baya Bar system. The earnings from the Brand Fund should not benefit Baya Bar, except as explicitly allowed for reasonable administrative costs. This ensures that the funds contributed by franchisees are primarily used for the intended purpose of advertising and marketing to benefit the entire Baya Bar system.