Can the Bft Franchisor cause the Fund to invest any surplus for future use?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor may cause the Fund to invest any surplus for future use by the Fund.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the franchisor has the authority to manage the advertising fund and invest any surplus for future use. Specifically, Bft may direct the Fund to invest any surplus monies for future utilization by the Fund. This provides Bft with flexibility in managing the Fund's resources and ensuring its availability for ongoing and future marketing and advertising initiatives.
This clause means that Bft is not obligated to spend all contributions to the fund in the same year they are collected. Instead, they can save surplus funds and invest them, potentially growing the fund over time. This could benefit franchisees by providing a larger pool of resources for future advertising and marketing campaigns.
However, it also means that franchisees may not see an immediate return on their contributions if Bft chooses to invest the surplus rather than spend it. It's important for prospective franchisees to understand that the FAC is purely advisory and Bft has the ultimate decision-making authority regarding the Fund. Franchisees should inquire about Bft's historical practices regarding the Fund, including how often surpluses have been invested and what types of investments have been made.