Does Bombs Away Franchising have a fiduciary duty regarding the Marketing Fund?

According to Bombs Away's 2024 Franchise Disclosure Document, Bombs Away Franchising does not have a fiduciary duty with regard to the Marketing Fund. The document states that the Marketing Fund will be spent at Bombs Away Franchising's sole discretion.

This means that Bombs Away has broad authority in deciding how the Marketing Fund is used, without the legal obligations of a fiduciary. A franchisee cannot expect that the funds will be spent in a way that directly benefits their specific franchise.

Franchisees contribute 2% of their gross sales to the Marketing Fund. Bombs Away Franchising will prepare an unaudited annual financial statement of the Marketing Fund within 120 days of the close of Bombs Away Franchising's fiscal year and will provide the financial statement to Franchisee upon request. Franchisees should be aware that expenditures from the Marketing Fund need not be proportionate to their contributions or provide any direct or indirect benefit to them.