What expenses may Beverly Anns Cookie reimburse from the Brand Fund?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
uirements set out in this Item 11.
We may reimburse ourselves, our authorized representatives, or our affiliate from the Brand Fund for administrative costs, independent audits, reasonable accounting, bookkeeping, reporting and legal expenses, taxes, and all other reasonable direct or indirect expenses that may be incurred by us or our authorized representatives and associated with the programs funded by the Brand Fund. We assume no fiduciary duty to you or other direct or indirect liability or obligation to collect amounts due to the Brand Fund or to maintain, direct, or administer the Brand Fund. Any unused funds in any calendar year will be applied to the following year's funds, and we reserve the right to contribute or loan additional funds to the Brand Fund on any terms we deem reasonable. Because we do not have this fund audited, audited financial statements are not available to Beverly Ann's franchisees. We will provide to you each year an annual accounting for the Brand Fund that shows how the Brand Fund proceeds have been spent for the previous year upon written request (Franchise Agreement – Section 11). We do not guarantee that advertising expenditures from the Brand Fund will benefit you or any other franchisee directly, on a pro rata basis, or at all.
We are not obligated to spend any amount on advertising in the geographical area where you are or will be located.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEM, AND TRAINING (FDD pages 37–43)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, the Brand Fund may be used to reimburse Beverly Ann's Cookie, its authorized representatives, or its affiliates for several categories of expenses. These include administrative costs, independent audits, reasonable accounting, bookkeeping, reporting, and legal expenses. Additionally, the Brand Fund can cover taxes and all other reasonable direct or indirect expenses incurred by Beverly Ann's Cookie or its representatives in connection with programs funded by the Brand Fund.
Beverly Ann's Cookie does not assume a fiduciary duty to franchisees regarding the Brand Fund, nor does it take on direct or indirect liability for collecting amounts due to the fund or for managing it. Any funds remaining unused at the end of a calendar year will be carried over to the following year. Beverly Ann's Cookie retains the right to contribute or loan additional funds to the Brand Fund under terms it deems reasonable.
It's important to note that Beverly Ann's Cookie does not have the Brand Fund audited, so audited financial statements are not available to franchisees. However, upon written request, Beverly Ann's Cookie will provide franchisees with an annual accounting that details how the Brand Fund's proceeds were spent in the previous year. The document specifies that Beverly Ann's Cookie does not guarantee that advertising expenditures from the Brand Fund will directly benefit any franchisee, either on a pro rata basis or at all.
During the fiscal year ending December 31, 2024, Beverly Ann's Cookie did not collect any Brand Fund fees. Prospective franchisees should inquire about the planned use and management of the Brand Fund to fully understand how their contributions will be utilized and what benefits they can expect.