What is the obligation of Kitchen Solvers regarding 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, Kitchen Solvers will provide franchisees with a copy of an unaudited financial report detailing the receipts and disbursements of the Brand Fund for the most recently concluded fiscal year. This report will be available within 30 days of the report's completion.
However, this provision is conditional. A Kitchen Solvers franchisee must submit a written request for the report on or before March 31st to receive it. This deadline is important for franchisees to note, as missing it would mean not receiving the report for that year.
The FDD also clarifies that the Brand Fund is not a trust or escrow account and does not create any fiduciary duties. Kitchen Solvers retains ownership of the funds, and franchisees have no property rights to the monies within the Brand Fund. For the fiscal year ending December 31, 2024, Kitchen Solvers allocated the Brand Fund as follows: 26% to support staff, 68% to branding, promotion, and advertising, and 6% to website hosting and security.