What salaries, administrative costs, and overhead may Best Brains incur in activities related to the administration of the Brand Development Fund?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
- The Brand Development Fund will be accounted for separately from the other funds of the Company and shall not be used to defray the Company's general operating expenses, except for such reasonable salaries, administrative costs and overhead we may incur in activities reasonably related to the administration of the Brand Development Fund and its advertising and marketing.
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 is used to enhance public recognition and patronage of the Best Brains brand for the benefit of all Best Brains businesses. Best Brains has sole discretion over the advertising and marketing programs financed by the fund, including creative concepts, materials, endorsements, and placement of advertisements.
The FDD specifies that the Brand Development Fund will be accounted for separately from the company's other funds. Best Brains can use the fund to cover reasonable salaries, administrative costs, and overhead that it incurs while administering the Brand Development Fund and its advertising and marketing activities.
Furthermore, Best Brains is authorized to spend more or less than the total contributions from all Best Brains businesses in any fiscal year. The Brand Development Fund may also borrow from the company or other lenders to cover deficits or invest any surplus for future use. An unaudited report of the fund's receipts and disbursements will be prepared annually and made available to franchisees upon written request.