What happens to the interest or other earnings of the Monicals Pizza System-wide marketing fund?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
We will use any interest or other earnings of the marketing fund before we use current contributions.
We intend for the marketing fund to be perpetual, but we have the right to terminate it if necessary.
We will not terminate the marketing fund until all contributions and earnings have been used for advertising and promotional purposes or have been returned to our franchisees on a pro rata basis.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 20–27)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, any interest or earnings generated by the System-wide marketing fund will be used before any current contributions to the fund are used.
The FDD states that Monicals Pizza intends for the marketing fund to be perpetual but retains the right to terminate it if necessary. However, Monicals Pizza will not terminate the marketing fund until all contributions and earnings have been used for advertising and promotional purposes or have been returned to franchisees on a pro rata basis.
This means that franchisees can expect any earnings from the marketing fund to be reinvested into advertising and promotion to benefit the Monicals Pizza system. In the event of termination, franchisees would receive a portion of the remaining funds, proportional to their contributions.