Is Deck Medic required to segregate the National Advertising Fund from its general operating funds?

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. Deck Medic also states that it is not a fiduciary or trustee of the National Advertising Fund.

This means that Deck Medic has the discretion to manage the National Advertising Fund alongside its other business funds. While Deck Medic is not legally obligated to keep the advertising funds separate, it will maintain unaudited financial records detailing the fund's expenditures. These records will be made available to franchisees, but no more than once in any 12-month period, showing how the contributed monies were spent each year.

As of December 31, 2023, Deck Medic had collected $20,592.19 for the National Advertising Fund. Of this amount, $17,587.93 (85%) was spent on the website and social media placement, and the remaining $3,004.26 (15%) was rolled into the National Advertising Fund for 2024. Deck Medic may use the National Advertising Fund to compensate themselves for administrative fees associated with managing the National Advertising Fund and for their internal employee salaries, expenses and overhead associated with or reasonably allocated to managing the activities of the National Advertising Fund and performing services on behalf of the National Advertising Fund including, but not limited to, directing, developing and managing media of the National Advertising Fund.