Can the Buff City Soap Brand Fund invest any surplus?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that the Brand Fund is intended to maximize recognition of the Marks and patronage of Buff City Soap makeries generally.
The Brand Fund will be accounted for separately from Franchisor's other funds and will not be used to defray any of Franchisor's general operating expenses, except for such reasonable salaries, administrative costs, travel expenses, and overhead as Franchisor may incur in activities related to the administration of the Brand Fund and its programs, including as described in Section 10(a) and with respect to collecting and accounting for contributions to the Brand Fund.
The Brand Fund is operated solely as a conduit for collecting and expending the Brand Fund Contributions.
Franchisor does not act as trustee with respect to the Brand Fu
Source: Item 23 — Receipts (FDD pages 69–186)
What This Means (2025 FDD)
According to the 2025 Buff City Soap Franchise Disclosure Document, the Brand Fund is intended to maximize recognition of the Buff City Soap marks and patronage of Buff City Soap makeries. The Brand Fund is used for marketing, advertising, and related programs.
The Brand Fund will be accounted for separately from Buff City Soap's other funds and will not be used to defray any of Buff City Soap's general operating expenses, except for reasonable salaries, administrative costs, travel expenses, and overhead that Buff City Soap may incur in activities related to the administration of the Brand Fund and its programs, including collecting and accounting for contributions to the Brand Fund.
The Brand Fund is operated solely as a conduit for collecting and expending the Brand Fund Contributions. Buff City Soap does not act as trustee with respect to the Brand Fund. The FDD does not specifically address whether the Brand Fund can invest any surplus. A prospective franchisee should seek clarification from Buff City Soap on whether the Brand Fund can invest any surplus.