Who manages the Marketing Fund for Endless Summer Sweets?

According to Endless Summer Sweets's 2024 Franchise Disclosure Document, the Marketing Fund will be managed at the sole discretion of the Franchisor, Endless Summer Sweets Franchising, Inc. The document explicitly states that Endless Summer Sweets is not a fiduciary with respect to the Marketing Fund. This means that Endless Summer Sweets has broad authority over how the fund is spent.

This arrangement gives Endless Summer Sweets significant control over the Marketing Fund, including decisions on how the money is spent and whether to allow other Endless Summer Sweets businesses to contribute to the fund. Endless Summer Sweets can also accumulate funds and carry the balance over to subsequent years, or loan money to the fund if it operates at a deficit.

For franchisees, this means they contribute to a fund managed by Endless Summer Sweets, with limited direct input on how those funds are used. However, Endless Summer Sweets will prepare an unaudited annual financial statement of the Marketing Fund within 120 days of the close of Endless Summer Sweets's fiscal year and will provide it to the franchisee upon request, offering some transparency into the fund's activities.