Is the Monicals Pizza franchisee entitled to an accounting of the Marketing Fund?

According to Monicals Pizza's 2025 Franchise Disclosure Document, franchisees are entitled to an accounting of the Marketing Fund. Specifically, an accounting of the Marketing Fund's operation will be prepared annually. This accounting is available to the Monicals Pizza franchisee upon request.

This clause ensures transparency in how Monicals Pizza manages and spends the Marketing Fund contributions made by franchisees. It allows franchisees to verify that the funds are being used appropriately for marketing programs and promotions that benefit the entire Monicals Pizza system.

However, the FDD also states that the Marketing Fund is not a trust, and Monicals Pizza assumes no fiduciary duty in administering the fund. While franchisees have a right to request an accounting, Monicals Pizza retains control over the fund's management and spending decisions. Franchisees should be aware that while they can request and review the accounting, they may have limited recourse if they disagree with specific expenditures, as Monicals Pizza does not have a fiduciary duty.

It is common practice in the franchise industry for franchisors to maintain a marketing fund supported by franchisee contributions. Franchise agreements typically outline the franchisee's right to access an annual accounting of the fund, ensuring transparency and accountability in the management of these pooled marketing resources.