Can the Best Brains Brand Development Fund invest surplus funds?
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 Best Brains' 2025 Franchise Disclosure Document, the Brand Development Fund may invest surplus funds for future use. Specifically, Best Brains is authorized to manage the fund in a way that allows it to spend more or less than the aggregate contributions in any given fiscal year.
This means that if the Brand Development Fund has a surplus, Best Brains can invest that surplus. Conversely, the fund can also borrow money from Best Brains or other lenders to cover deficits. This provides Best Brains with flexibility in managing the fund and ensuring that there are sufficient resources available for advertising and marketing activities.
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 provides franchisees with some transparency into how the fund is being managed and how their contributions are being used.