Who manages the Marketing Fund for Bombs Away?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
xpenses related to the Marketing Fund).
- (c) Discretion. Franchisee agrees that expenditures from the Marketing Fund need not be proportionate to contributions made by Franchisee or provide any direct or indirect benefit to Franchisee. The Marketing Fund will be spent at Bombs Away Franchising's sole discretion, and Bombs Away Franchising has no fiduciary duty with regard to the Marketing Fund.
- (d) Contribution by Other Outlets.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, Bombs Away Franchising manages the Marketing Fund. The document states that the Marketing Fund will be spent at Bombs Away Franchising's sole discretion, and Bombs Away Franchising has no fiduciary duty regarding the Marketing Fund.
This means that Bombs Away has complete control over how the Marketing Fund is spent, and they are not legally obligated to act in the franchisees' best interests regarding the fund. The funds can be used for various marketing and advertising activities, as determined by Bombs Away Franchising.
Bombs Away Franchising will provide an unaudited annual financial statement of the Marketing Fund within 120 days of the close of Bombs Away Franchising's fiscal year, which will be available to the franchisee upon request. This provides some transparency, but franchisees have limited control over how their contributions are used.