Is the Best In Class Education Center Brand Fund considered a trust?

According to the 2025 Best In Class Education Center FDD, the Brand Fund is not a trust. This means that Best In Class Education Center does not have fiduciary obligations or liability to franchisees regarding the administration of the Brand Fund. Best In Class Education Center has the right to discontinue the Brand Fund with only 30 days' notice.

This is important for prospective franchisees because it clarifies the legal relationship between the franchisee and Best In Class Education Center concerning the Brand Fund. Since it's not a trust, franchisees have less legal recourse regarding how the funds are managed. Best In Class Education Center has more discretion over the fund's use and can discontinue it with limited notice, which could impact marketing and brand-building efforts.

Typically, franchise systems utilize brand funds to support marketing and advertising initiatives. The fact that Best In Class Education Center retains control and discretion over the Brand Fund is a common practice. However, the lack of fiduciary responsibility and the ability to discontinue the fund with short notice are factors a potential franchisee should carefully consider. It would be prudent for a prospective franchisee to inquire about the historical management and performance of the Brand Fund and the circumstances under which it might be discontinued.