What is the role of the Fund advisory committee in relation to the Fund maintained by Bft?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
The Fund is administered by Franchisor (or its affiliates) with the assistance and advice provided by a Fund advisory committee (the "FAC") pursuant to a charter agreement among Franchisor and the members of the FAC, which serves in an advisory capacity only.
The FAC represents BFT Studio franchisees and advises Franchisor with regard to all advertising, marketing and public relations programs and activities financed by the Fund, including the creative concepts, materials and endorsements used and the geographic market, media placement and allocation.
The FAC is purely advisory in nature and has no operational or ultimate decision-making authority.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the Fund advisory committee (FAC) plays an advisory role in the administration of the advertising fund. The FAC represents Bft franchisees and advises Bft on advertising, marketing, and public relations programs financed by the fund. This includes providing input on creative concepts, materials, endorsements, geographic market strategies, media placement, and budget allocation.
However, the FAC's role is purely advisory. It does not have any operational or ultimate decision-making authority. Bft (or its affiliates) ultimately administers the fund, taking into account the advice from the FAC. This means that while franchisees have a voice through the FAC, Bft retains control over how the advertising fund is managed and spent.
For a prospective Bft franchisee, this means that they will contribute to the advertising fund and have some representation through the FAC. However, they should be aware that Bft has the final say in how the fund is used. Franchisees should engage with the FAC to voice their opinions and contribute to the discussion on marketing strategies, but they should also understand the limitations of the committee's power.