Is Deck Medic a fiduciary or trustee of the National Advertising Fund?

According to Deck Medic's 2024 Franchise Disclosure Document, Deck Medic is not required to segregate the National Advertising Fund from its general operating funds and is not a fiduciary or trustee of the National Advertising Fund. This means that Deck Medic is not legally obligated to act in the best interests of the franchisees when managing the National Advertising Fund.

This arrangement gives Deck Medic significant discretion in how the advertising funds are spent. While Deck Medic states that the funds will be used in a manner determined to be in the best interest of the franchisees and the System, the absence of a fiduciary duty provides less legal protection for franchisees regarding the fund's management.

Prospective franchisees should be aware that Deck Medic has considerable leeway in how the National Advertising Fund is utilized, including using it for administrative costs and internal employee salaries. Franchisees are entitled to an unaudited accounting of how the monies contributed to the National Advertising Fund were spent each year, but can only request this once in any 12-month period. This lack of fiduciary responsibility is not uncommon in franchising, but it is important for franchisees to understand the implications and to carefully review the fund's expenditures when the accounting is made available.