What happens to surplus amounts in the Brand Fund for Beverly Anns Cookie?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
Any surplus amounts in the Brand Fund may be invested. Any unused funds collected 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. The Brand Fund is not a trust, and we have no fiduciary obligations to you regarding our administration of the Brand Fund. We may spend more or less than the total Brand Fund payments in that year, lend to the Brand Fund (paying reasonable interest) to cover deficits, or invest any surplus funds for future use. We will use all interest earned on Brand Fund payments to pay costs before using the Brand Fund's other assets. We will prepare an annual, unaudited statement of Brand Fund collections and expenses and give you the statement within 45 days upon the receipt of a written request.
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, any surplus amounts in the Brand Fund may be invested. Unused funds collected during a calendar year will be applied to the following year's funds. Beverly Anns Cookie retains the right to contribute or loan additional funds to the Brand Fund on terms they deem reasonable. The Brand Fund is not a trust, and Beverly Anns Cookie has no fiduciary obligations to franchisees regarding its administration.
Beverly Anns Cookie may spend more or less than the total Brand Fund payments in a given year. They can also lend to the Brand Fund, paying reasonable interest to cover deficits, or invest any surplus funds for future use. Any interest earned on Brand Fund payments will be used to pay costs before using the Brand Fund's other assets.
Beverly Anns Cookie will prepare an annual, unaudited statement of Brand Fund collections and expenses. This statement will be provided to franchisees within 45 days of receiving a written request. This means that while franchisees contribute to the Brand Fund, Beverly Anns Cookie has significant discretion in how the funds are managed and spent, with some transparency provided through an annual statement.