What can the Endless Summer Sweets Marketing Fund be used for?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
The Marketing Fund will be spent at Franchisor's sole discretion, and Franchisor is not a fiduciary with respect to the Marketing Fund.
Franchisor may accumulate funds in the Marketing Fund and carry the balance over to subsequent years.
If the Marketing Fund operates at a deficit or requires additional funds at any time, Franchisor may loan such funds to the Marketing Fund on reasonable terms.
Franchisor will prepare an unaudited annual financial statement of the Marketing Fund within 120 days of the close Franchisor's fiscal year and will provide the financial statement to Franchisee upon request.
Source: Item 23 — RECEIPTS (FDD pages 39–125)
What This Means (2024 FDD)
According to the 2024 Endless Summer Sweets FDD, the Marketing Fund will be spent at the Franchisor's sole discretion. Endless Summer Sweets is not a fiduciary with respect to the Marketing Fund.
This means that while franchisees may be required to contribute to the Marketing Fund, Endless Summer Sweets has broad authority over how the funds are spent. The FDD does not specify exactly what the Marketing Fund will be used for, but it implies that the funds will be used for marketing and promotional activities.
Endless Summer Sweets may accumulate funds in the Marketing Fund and carry the balance over to subsequent years. If the Marketing Fund operates at a deficit or requires additional funds at any time, Endless Summer Sweets may loan such funds to the Marketing Fund on reasonable terms. Endless Summer Sweets will prepare an unaudited annual financial statement of the Marketing Fund within 120 days of the close of Endless Summer Sweets' fiscal year and will provide the financial statement to the Franchisee upon request.