Can Bft spend more or less than the total contributions to the Fund in a calendar year?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor may spend in any calendar year more or less than the total contributions to the Fund in that year.
Franchisor may cause the Fund to invest any surplus for future use by the Fund.
Franchisor (or its affiliates) may borrow from its affiliates (or Franchisor) or other lenders on behalf of the Fund to cover deficits of the Fund.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, Bft has the flexibility to manage the marketing fund in a way that allows for spending that may not directly align with the contributions received in a specific calendar year. Bft may spend more or less than the total contributions to the Fund in any given year. This provides Bft with the ability to strategically allocate resources based on the needs of the franchise system.
This flexibility allows Bft to invest surplus funds for future use, ensuring that the marketing fund can sustain long-term campaigns and initiatives. Bft also has the option to borrow funds from its affiliates or other lenders to cover any deficits in the fund. This ensures that marketing efforts can continue even if current contributions are insufficient to meet the planned expenses.
For a prospective franchisee, this means that the level of marketing and advertising support may vary from year to year, depending on the overall strategy and financial status of the fund. While Bft is not obligated to spend an amount equivalent or proportionate to a franchisee's contribution, the fund is intended to maximize general public recognition and acceptance of the Bft system and marks for the benefit of the entire system.