Is the Kidokinetics Brand Development Fund considered a trust?

According to Kidokinetics's 2024 Franchise Disclosure Document, the Brand Development Fund is not a trust. The document explicitly states that Kidokinetics has no fiduciary obligations to franchisees regarding the administration of the Brand Development Fund. This means that Kidokinetics has considerable discretion in how the fund is managed and spent.

Kidokinetics may use the Brand Development Fund for expenditures deemed necessary to promote or improve the Kidokinetics system or brand. These expenditures can include developing advertising and marketing materials, conducting market research, website development, and covering the salaries of employees involved in fund administration. Kidokinetics has sole discretion in determining the content, media, and placement of advertising activities.

Any surplus monies in the Brand Development Fund may be invested by Kidokinetics, and unused funds from one calendar year will be applied to the following year's funds. Kidokinetics also reserves the right to contribute or loan additional funds to the Brand Development Fund. While an unaudited financial accounting of the Brand Development Fund's operations will be prepared annually and provided to franchisees upon written request, expenditures in any geographic area may not be proportionate to the contributions from franchisees in that area. Kidokinetics also retains the right to change, merge, re-form, or dissolve the Brand Development Fund at its discretion, provided all amounts are spent before termination. These stipulations highlight the importance of prospective franchisees understanding the terms and conditions related to the Brand Development Fund and recognizing that its management is largely controlled by Kidokinetics.