Does the Chocolate Bash franchise agreement establish CB Franchising as a fiduciary of the franchisee?

According to Chocolate Bash's 2024 Franchise Disclosure Document, the franchise agreement does not establish CB Franchising as a fiduciary of the franchisee, specifically regarding the Marketing Fund. The document states that the Marketing Fund will be spent at CB Franchising's sole discretion, and CB Franchising has no fiduciary duty with regard to the Marketing Fund.

This means that while Chocolate Bash collects money for marketing purposes, they are not legally obligated to act in the franchisee's best interest when deciding how to spend those funds. Franchisees contribute to the Marketing Fund, but Chocolate Bash has the sole discretion on how the funds are spent.

This arrangement is not uncommon in franchising, but it's important for prospective franchisees to understand that they have limited control over how their marketing contributions are used. While the FDD states that the Marketing Fund will be used for marketing, advertising, and public relations materials, programs and campaigns, the specific allocation and effectiveness of these expenditures are at the discretion of Chocolate Bash.