What is the condition for a Kitchen Solvers franchisee to receive the Brand Fund financial report?
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, a franchisee can obtain a copy of the unaudited financial report for the Brand Fund. This report shows the receipts and disbursements of the fund for the most recently concluded fiscal year. To receive this report, a franchisee must send a written request for it on or before March 31st. The report will then be provided within 30 days of its completion.
This condition means that Kitchen Solvers franchisees need to be proactive in requesting this financial information if they want to review it. The Brand Fund is supported by a fee of 1% of monthly gross sales, so understanding how these funds are used is important for franchisees. The FDD specifies how the fund was used during the last fiscal year ending December 31, 2024, with 26% spent on support staff, 68% on branding, promotion and advertising, and 6% on website hosting and security.
It is also important to note that the Brand Fund is not a trust or escrow account and creates no fiduciary duties. Kitchen Solvers retains ownership of the funds, and franchisees have no property rights concerning the monies in the fund. This is a fairly typical arrangement in franchising, where franchisors manage advertising funds with discretion over how they are spent to benefit the brand as a whole.