What rights does a Kitchen Solvers franchisee have regarding the monies in the Brand Fund?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to your local marketing obligations, you must pay us a Brand Fund Fee in an amount equal to 1% of your monthly Gross Sales. We may increase the maximum annual contribution upon 30 days' prior written notice to you.
The Brand Fund Fee will be deposited into a Brand Fund (the "Fund"). We will administer the Fund in our sole and absolute discretion. We may administer the Fund ourselves or designate or license one or more third parties to do so. Any company-owned or affiliate-owned KITCHEN SOLVERS® businesses we (or our affiliates) operate will contribute to the Fund at the same rate as similarly situated franchisees. We may formulate, develop, and conduct marketing and promotion programs out of the Fund to promote the KITCHEN SOLVERS® system and products in a form and media we determine in our sole judgment to be appropriate. We have sole discretion over the creative concepts, materials, media, type, nature, scope, frequency, place, form, copy, layout and content of all advertising and marketing paid out of the Fund. Media used for any marketing program may include internet, social media, television, radio, newspapers, magazines and other written publications, which all may be local, regional or national in coverage. We may use national and regional marketing and advertising agencies from time to time to create and place advertising and other marketing communications. We reserve the right to use the Fund to reimburse us for all costs that we incur related to the marketing and promotion programs, including the proportionate compensation of employees who devote time and render service in the conduct, formulation, development and production of the marketing and promotion programs or the administration of the Fund.
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's 2025 Franchise Disclosure Document, franchisees have very limited rights regarding the Brand Fund. Franchisees must pay a Brand Fund Fee equal to 1% of their monthly Gross Sales, and Kitchen Solvers has sole and absolute discretion in administering the fund. This includes determining the marketing and promotion programs, creative concepts, media, and content.
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 a franchisee benefits directly or proportionally from advertising or marketing efforts. Excess funds not spent in a fiscal year are carried over for future use.
The Brand Fund is not a trust or escrow account and does not create any fiduciary duties. It is considered Kitchen Solvers's property, and franchisees have no property rights to the monies within the fund. However, Kitchen Solvers will provide a copy of an unaudited financial report showing the fund's receipts and disbursements for the most recently concluded fiscal year if a franchisee submits a written request by March 31. During 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.