Does Kitchen Solvers have fiduciary duties or obligations related to the Brand Fund?
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.
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, Kitchen Solvers does not have fiduciary duties or obligations related to its Brand Fund. The FDD explicitly states that the Brand Fund is not a trust or escrow account and that it creates no fiduciary duties or obligations. Kitchen Solvers retains ownership of the funds and has the discretion to administer them.
Kitchen Solvers franchisees contribute to the Brand Fund through a fee equal to 1% of their monthly Gross Sales. These funds are used for marketing and promotion programs to promote the Kitchen Solvers system and products. Kitchen Solvers has sole discretion over the advertising and marketing content and media.
While franchisees contribute to the Brand Fund, Kitchen Solvers is not obligated to spend any amount on marketing in a franchisee's specific area or territory, nor are they required to ensure that franchisees benefit directly or pro-rata from the advertising or marketing efforts. Excess funds not spent in a fiscal year are carried over for future use. Franchisees can request a copy of an unaudited financial report showing the receipts and disbursements of the Fund for the most recently concluded fiscal year, provided they make a written request by March 31.