Is Hear Again America considered a fiduciary with respect to Brand Fund Contributions?
Hear_Again_America Franchise · 2025 FDDAnswer from 2025 FDD Document
In no event will we be deemed a fiduciary with respect to any Brand Fund Contributions we receive or administer. We are not required to have an independent audit of the Brand Fund completed. We will prepare an unaudited statement of contributions and expenditures for the Brand Fund and make it available within 60 days after the close of our fiscal year to franchisees who make a written request for a copy.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 26–35)
What This Means (2025 FDD)
According to Hear Again America's 2025 Franchise Disclosure Document, Hear Again Franchising, LLC will not be deemed a fiduciary with respect to any Brand Fund contributions it receives or administers. This means that Hear Again America is not legally obligated to act in the best interest of its franchisees when managing the Brand Fund.
While Hear Again America is not a fiduciary, the FDD states that the company will prepare an unaudited statement of contributions and expenditures for the Brand Fund. This statement will be made available to franchisees who request it in writing within 60 days after the close of Hear Again America's fiscal year. This provides some transparency, allowing franchisees to see how the Brand Fund monies are being spent, even though it is not independently audited.
It is important for prospective franchisees to understand that Hear Again America has the right to direct all marketing programs and is not obligated to ensure that franchisees benefit from the Brand Fund in proportion to their contributions. This is a common practice in franchising, but franchisees should carefully consider the implications before investing.