Is the Kitchen Solvers Brand Fund considered a trust or escrow account?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
We have no obligations to spend any amount on marketing in the area or Territory where you are located. We are not required to ensure that you benefit directly or pro-rata from placement of advertising or marketing. Excess Fund contributions not spent in any fiscal year will be carried
over for future use. The Fund is not a trust or escrow account, creates no fiduciary duties or obligations, and is our property. You have no property rights of any kind with respect to the monies in the Fund. We will provide you with a copy of an unaudited financial report showing receipts and disbursements of the Fund for the most recently concluded fiscal year within 30 days of the completion of the report if you send a written request for the report on or before March 31. The Fund program will not be used for advertising principally directed at the sale of franchises, however media, materials and programs prepared using the Fund may describe our franchise program, reference the availability of franchises and related information, and process franchise leads.
During our last fiscal year ending December 31, 2024, we used the Fund as follows:
26% on support staff 68% on branding, promotion and advertising 6% on website hosting and security
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 26–31)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, the Brand Fund is not a trust or escrow account. Kitchen Solvers explicitly states that the Brand Fund creates no fiduciary duties or obligations and is the property of Kitchen Solvers. Franchisees have no property rights to the monies within the fund.
This means that Kitchen Solvers has full control over the Brand Fund and how it is spent. While Kitchen Solvers will provide a copy of an unaudited financial report showing the fund's receipts and disbursements for the most recently concluded fiscal year within 30 days of the report's completion if a franchisee submits a written request by March 31, the franchisees have limited recourse regarding the fund's management.
For a prospective Kitchen Solvers franchisee, this underscores the importance of understanding how Kitchen Solvers allocates the Brand Fund. During the last fiscal year ending December 31, 2024, Kitchen Solvers used the fund as follows: 26% on support staff, 68% on branding, promotion, and advertising, and 6% on website hosting and security. While the FDD states that the fund program will not be used for advertising principally directed at the sale of franchises, it also notes that media, materials, and programs prepared using the fund may describe the franchise program, reference the availability of franchises and related information, and process franchise leads. This is a common practice in franchising, but franchisees should be aware of it.