Can the Best Brains Brand Development Fund borrow money?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
- We shall be authorized to spend in any fiscal year an amount greater or less than the aggregate contribution of all BEST BRAINS businesses to the Brand Development Fund in that year; and the Brand Development Fund may borrow from the Company or other lenders to cover deficits of the Brand Development Fund or cause the Brand Development Fund to invest any surplus for future use by the Brand Development Fund. An unaudited report of the receipts and disbursements of the Brand Development Fund will be prepared annually and will be made available to you upon written request.
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to the 2025 Best Brains Franchise Disclosure Document, the Brand Development Fund can borrow money. Specifically, Best Brains is authorized to spend more or less than the aggregate contributions from all Best Brains businesses in any fiscal year.
To cover deficits, the Brand Development Fund may borrow from Best Brains itself or other lenders. Conversely, any surplus in the fund may be invested for future use. This provides Best Brains with financial flexibility in managing the Brand Development Fund, allowing them to address shortfalls or capitalize on opportunities as they arise.
An unaudited report of the receipts and disbursements of the Brand Development Fund will be prepared annually and will be made available to franchisees upon written request. This ensures transparency in how the fund is managed and spent. This is a fairly standard practice in franchising, where advertising funds are common, and franchisors often have the discretion to manage them for the overall benefit of the brand.