What happens to excess Kitchen Solvers Brand Fund contributions not spent in a fiscal year?
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, any excess Brand Fund contributions that are not spent during a fiscal year will be carried over for future use. The document specifies that the Brand Fund is not a trust or escrow account and does not create any fiduciary duties or obligations. It is considered the property of Kitchen Solvers, and franchisees have no property rights to the monies within the fund.
Kitchen Solvers retains sole discretion over how the Brand Fund is administered, including the ability to designate third parties to manage it. The company can use the fund to cover costs related to marketing and promotion programs, including employee compensation for those involved in these activities. The FDD states that Kitchen Solvers has no obligation 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 proportionally from advertising or marketing efforts.
Kitchen Solvers franchisees can request a copy of an unaudited financial report showing the receipts and disbursements of the Brand Fund for the most recently concluded fiscal year. This request must be submitted in writing on or before March 31, and the report will be provided within 30 days of its completion. For the fiscal year ending December 31, 2024, Kitchen Solvers allocated the Brand Fund with 26% spent on support staff, 68% on branding, promotion, and advertising, and 6% on website hosting and security.
This arrangement is fairly typical in franchising, where brand funds are controlled by the franchisor to promote the brand as a whole. Franchisees contribute with the understanding that the benefits may not be direct or immediate but are intended to enhance the overall brand recognition and value. The ability to request a financial report provides some transparency, though the fund is ultimately managed at Kitchen Solvers' discretion.