What happens to excess funds in the Dryject Marketing Fund?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
Marketing Fund Administration. The Marketing Fund is administered by us and may, in the future, at our option, be established as a not-for-profit corporation. The Marketing Fund will prepare internally unaudited income and expense statements on an annual basis. Income statements, expense statements and an accounting of advertising expenditures will be available to any franchisee upon written request. Excess funds not spent in any given fiscal year will be carried forward to the next fiscal year. The Marketing Fund is intended to remain in existence, however we reserve the right to terminate the Marketing Fund but only after all monies have been spent for advertising and promotion.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 26–33)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, any excess funds remaining in the Marketing Fund at the end of a fiscal year will be carried forward to the next fiscal year. The Marketing Fund is intended to remain in existence, but Dryject reserves the right to terminate it, provided all monies have been spent for advertising and promotion.
This means that Dryject franchisees can expect that unspent marketing contributions will be used for future marketing efforts. It also provides some assurance that Dryject cannot simply dissolve the fund and retain the remaining balance; the funds must be used for advertising and promotion before the fund can be terminated.
It is fairly common in franchising for marketing funds to carry over unspent balances to the next year. This practice allows for the accumulation of funds for larger, more impactful marketing campaigns. The FDD also states that Dryject will prepare internally unaudited income and expense statements on an annual basis, and these statements, along with an accounting of advertising expenditures, will be available to any franchisee upon written request, providing transparency in how the Marketing Fund is managed.