Is Bb.Q Chicken acting as a fiduciary of the advertising fund?
Bb_Q_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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- We are not a fiduciary of the Fund.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 33–41)
What This Means (2025 FDD)
According to Bb.Q Chicken's 2025 Franchise Disclosure Document, Bb.Q Chicken explicitly states that it is not a fiduciary of the advertising fund. The document clarifies that Bb.Q Chicken directs all advertising programs and has sole discretion in approving creative concepts, materials, media, and their allocation. The advertising fund aims to maximize public recognition of the Bb.Q Chicken brand and improve the collective success of all franchised businesses.
The funds collected can be used for various advertising-related expenses, including television, radio, magazine, and newspaper campaigns, direct mail, billboard advertising, public relations, advertising agencies, menu and product development, website maintenance, and personnel costs. Bb.Q Chicken may reimburse itself from the fund for reasonable administrative costs. Sums paid into the fund are accounted for separately from Bb.Q Chicken's general funds, and any unspent amounts are carried over to the following year. No portion of the fund will be used for franchise sales solicitation.
This arrangement means that while franchisees contribute to the advertising fund, Bb.Q Chicken has significant control over how the money is spent, and is not legally bound to act in the franchisees' best financial interest as a fiduciary would be. Franchisees should be aware that Bb.Q Chicken is not obligated to spend money in their specific area or ensure that each franchisee benefits directly or proportionally from advertising placements.