What does Monicals Pizza intend to do with any interest or other earnings of the marketing fund?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
We expect to use all contributions in the fiscal year they are made.
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 the 2025 Monicals Pizza Franchise Disclosure Document, any interest or earnings from the system-wide marketing fund will be used before current contributions are utilized. Monicals Pizza states that it intends for the marketing fund to be perpetual, but retains the right to terminate it if necessary.
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 if the marketing fund is terminated, franchisees would receive a portion of the remaining funds based on their contribution percentage.
This policy ensures that any earnings generated by the marketing fund are reinvested into the system for advertising and promotional activities, or returned to the franchisees should the fund be discontinued. This benefits franchisees by potentially increasing the funds available for marketing efforts without increasing their contribution percentage. It also protects franchisees by ensuring that any remaining funds are returned to them if the marketing fund is terminated.