Does a Kitchen Solvers franchisee have property rights with respect to the monies in 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, franchisees do not have property rights regarding the Brand Fund. The Brand Fund is not a trust or escrow account and creates no fiduciary duties. Kitchen Solvers retains ownership of the fund.
The Brand Fund is supported by a Brand Fund Fee, which is 1% of the franchisee's monthly Gross Sales. Kitchen Solvers has the discretion to administer the fund and use it for marketing and promotion programs. These programs aim to promote the Kitchen Solvers system and products through various media channels.
Kitchen Solvers is not obligated to spend any amount on marketing in the franchisee's specific area or territory, nor are they required to ensure that franchisees directly benefit from advertising or marketing efforts. Any excess funds not spent in a fiscal year will be 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 within 30 days of the completion of the report if they send a written request for the report on or before March 31.