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

According to Deck Medic's 2024 Franchise Disclosure Document, the franchisor is not considered a trustee or fiduciary of the National Advertising Fund. The document explicitly states that the National Advertising Fund is not a trust and that Deck Medic, as the franchisor, does not have the responsibilities of a trustee or fiduciary.

This means that Deck Medic has considerable discretion in managing the National Advertising Fund. The funds are not required to be kept separate from the franchisor's other assets and accounts. This arrangement gives Deck Medic flexibility in how it manages and utilizes the advertising funds collected from franchisees.

For a prospective Deck Medic franchisee, this is an important consideration. While franchisees are required to contribute to the National Advertising Fund, the franchisor has broad authority over how these funds are spent. Franchisees acknowledge that they may not directly benefit from the advertising and marketing efforts in proportion to their contributions, and they cannot reduce or eliminate their contributions based on a perceived lack of benefit. Franchisees should be aware that Deck Medic's decisions regarding the National Advertising Fund are not subject to the same legal standards as those of a trustee or fiduciary, which typically require a higher level of care and loyalty.