Does Better Blend have a fiduciary duty regarding the Marketing Fund?

According to Better Blend's 2024 Franchise Disclosure Document, Better Blend does not have a fiduciary duty regarding the Marketing Fund. The FDD states that the Marketing Fund will be spent at Better Blend's sole discretion. This means that Better Blend has broad authority in deciding how the Marketing Fund is used.

Better Blend is required to use the Marketing Fund only for marketing, advertising, and public relations efforts related to Better Blend. These activities can occur at the local, regional, national, and/or international level. The expenditures do not need to be proportionate to a franchisee's contributions or provide any direct or indirect benefit to the franchisee.

Better Blend is not required to hold Marketing Fund contributions in a separate bank account. However, Better Blend will prepare an unaudited annual financial statement of the Marketing Fund within 120 days of the close of Better Blend's fiscal year and provide it to the franchisee upon written request. This provides some transparency, even though Better Blend has no fiduciary duty and has sole discretion over the fund's use.