Does Monicals Pizza assume any fiduciary duty in administering the marketing fund?

According to Monicals Pizza's 2025 Franchise Disclosure Document, Monicals Pizza does not assume any fiduciary duty in administering the marketing fund. The document explicitly states that the marketing fund is not a trust. While Monicals Pizza will maintain contributions to the marketing fund in a separate account and will not use them for general operating expenses (except for reasonable administrative costs and overhead), this does not create a fiduciary duty.

This means that Monicals Pizza has more flexibility in how it manages and spends the marketing fund, compared to a situation where a fiduciary duty exists. While Monicals Pizza intends for the marketing fund to be perpetual, it retains the right to terminate it if necessary, ensuring that all contributions and earnings are used for advertising and promotional purposes or returned to franchisees on a pro rata basis.

Prospective franchisees should understand that while Monicals Pizza aims to act in the best interest of the system, the absence of a fiduciary duty provides them with greater latitude in decision-making regarding the marketing fund. Franchisees have the right to request a copy of the annual accounting of the marketing fund, which can provide some transparency into how the funds are being managed. However, franchisees should be aware that Monicals Pizza controls the creative concepts, materials, media, placement, and allocation of advertisements.