Does Beverly Anns Cookie have fiduciary obligations to franchisees regarding the administration of the Brand Fund?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
The Brand Fund is used to promote public awareness of our brand and to improve our System. You are required to pay the Brand Fund Contribution. The Brand Fund may be administered by us or our affiliate or designees, at our discretion. We may use the Brand Fund for any expenditure that we, in our sole discretion, deem necessary or appropriate to promote or improve the System or the Beverly Ann's Cookie Truck brand. We may incorporate the Brand Fund or operate it through a separate entity whenever we deem appropriate.
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, the Brand Fund is used to promote public awareness of the brand and improve the Beverly Anns Cookie system. Franchisees are required to contribute to this fund.
The document states that Beverly Anns Cookie, or its affiliates or designees, has the discretion to administer the Brand Fund. Beverly Anns Cookie has the sole discretion to decide how the Brand Fund is spent, determining what expenditures are necessary or appropriate to promote or improve the system or the Beverly Ann's Cookie Truck brand.
Beverly Anns Cookie retains the right to incorporate the Brand Fund or operate it through a separate entity if deemed appropriate. This arrangement gives Beverly Anns Cookie significant control over the Brand Fund, without explicitly stating any fiduciary duty to franchisees in its administration. A prospective franchisee should seek clarification from Beverly Anns Cookie regarding the specific standards and oversight mechanisms governing the use of the Brand Fund to ensure transparency and accountability.