Is the Brand Development Fund for Dryer Vent Squad considered a trust?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
- (8) Franchisee and Franchisor acknowledge and agree that (a) the Brand Development Fund is not a trust, (b) Franchisor is not a trustee or fiduciary of the Brand Development Fund, and (c) Franchisor may deposit and maintain any and all funds of the Brand Development Fund Fee in Franchisor's general accounts.
Source: Item 23 — RECEIPTS (FDD pages 51–207)
What This Means (2024 FDD)
According to Dryer Vent Squad's 2024 Franchise Disclosure Document, the Brand Development Fund is not considered a trust. The document explicitly states that Dryer Vent Squad is not a trustee or fiduciary of the Brand Development Fund. Furthermore, Dryer Vent Squad is allowed to deposit and maintain the Brand Development Fund fees in its general accounts.
This arrangement means that Dryer Vent Squad has significant control over the Brand Development Fund. Dryer Vent Squad is not legally obligated to segregate these funds from its other assets. This differs from a trust, where funds are held separately and managed by a trustee with specific fiduciary duties to the beneficiaries.
As a Dryer Vent Squad franchisee, it is important to understand that the Brand Development Fund is not a trust, and Dryer Vent Squad has considerable discretion in how the funds are managed and spent. While Dryer Vent Squad may establish a council to provide guidance, the final decisions regarding the fund's administration and marketing matters remain with Dryer Vent Squad. Franchisees should be aware that Dryer Vent Squad-owned businesses are not required to contribute to the Brand Development Fund.