Is the National Branding Account for Bor Restoration franchisees considered a trust?

According to Bor Restoration's 2024 Franchise Disclosure Document, the National Branding Account is explicitly not a trust. Bor Restoration may collect a percentage of a franchisee's gross sales or a fixed dollar figure for national advertising, termed the National Branding Fee, which is due at the same time as the royalty payments. These fees are deposited into a National Branding Account.

The FDD clearly states that the National Branding Account is not a trust, and Bor Restoration assumes no fiduciary duty in administering it. Any funds not used in a given year will be carried over to the next year. Bor Restoration has sole discretion in administering the National Branding Account, and the proceeds may be used for various advertising and administrative costs reasonably intended to benefit franchisees.

Bor Restoration makes no guarantee that advertising expenditures from the National Branding Account will directly benefit any specific franchisee or on a pro-rata basis. The company also assumes no direct or indirect liability for collecting amounts due to the National Branding Account or for maintaining, directing, or administering the account. For the year ending December 31, 2023, Bor Restoration collected no money for this account.