Is the Monicals Pizza marketing fund considered a trust?

According to the 2025 Monicals Pizza Franchise Disclosure Document, the marketing fund is not considered a trust. The FDD explicitly states that Monicals Pizza assumes no fiduciary duty in administering the marketing fund. This means that the fund is not governed by the same legal obligations as a trust, which typically requires a trustee to act in the best interests of the beneficiaries.

As a Monicals Pizza franchisee, this distinction is important because it clarifies the legal framework under which the marketing fund operates. While Monicals Pizza intends for the fund to be perpetual and to use all contributions and earnings for advertising and promotional purposes, the absence of a fiduciary duty provides the company with more flexibility in how it manages the fund. However, Monicals Pizza states that they will maintain franchisee contributions in a separate account and will not use them for general operating expenses, except for reasonable administrative costs.

Monicals Pizza also states that they will provide an annual accounting of the marketing fund to franchisees upon request, and may require an independent audit of the fund at the fund's expense. While franchisees contribute to the fund, Monicals Pizza controls the creative concepts, materials, media, placement, and allocation of advertisements. The company does not guarantee that any particular franchisee will benefit directly or in proportion to their contribution from the advertising efforts.