Can Dryject terminate the 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, Dryject does reserve the right to terminate the Marketing Fund. However, this is only permissible after all the money in the fund has been spent for advertising and promotion purposes.
Dryject administers the Marketing Fund, and at its option, may establish it as a not-for-profit corporation in the future. The fund prepares unaudited income and expense statements annually, which are available to franchisees upon written request. Any excess funds not spent in a given fiscal year are carried forward to the next year.
As a Dryject franchisee, it's important to understand that while the Marketing Fund is intended to remain in existence, Dryject retains the right to terminate it under the specific condition that all funds have been exhausted on advertising and promotion. This provides some assurance that the contributions will be used for their intended purpose before any termination occurs.