Where are all Marketing Fund Contributions maintained by Monicals Pizza?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
All Marketing Fund Contributions shall be maintained in a separate account from the monies of Franchisor and shall not be used to defray any of Franchisor's general operating expenses, except for such reasonable costs and expenses, if any, that Franchisor may incur in activities reasonably related to the administration of the Marketing Fund.
- 11.3.3 Franchisor shall endeavor to spend all Marketing Fund Contributions on marketing programs and promotions during Franchisor's fiscal year within which such contributions are made.
If excess amounts remain in any Marketing Fund at the end of such fiscal year, all expenditures in the following fiscal year(s) shall be made first out of such excess amounts, including any interest or other earnings of the Marketing Fund, and then out of current contributions.
- 11.3.4 Although Franchisor intends the Marketing Fund to be an ongoing fund, Franchisor has the right to terminate the Marketing Fund at any time.
The Marketing Fund shall not be terminated, however, until all Marketing Fund Contributions have been expended for advertising and promotional purposes or returned to Franchisee and other franchisees on a pro rata basis based on total Marketing Fund Contributions made in the aggregate by each franchisee with respect to the fiscal years during which the Marketing Fund Contributions then remaining were collected.
11.3.5 Each Monical's Restaurant operated by Franchisor or an Affiliate shall make Marketing Fund Contributions at the same rate as Monical's Pizza franchisees.
11.3.6 An accounting of the operation of the Marketing Fund shall be prepared annually and shall be available to Franchisee upon request.
Franchisor retains the right to have the Marketing Fund audited, at the expense of the Marketing Fund, by an independent certified public accountant selected by Franchisor.
- 11.3.7 Franchisee acknowledges that the Marketing Fund is not a trust and Franchisor assumes no fiduciary duty in administering the Marketing Fund.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, all Marketing Fund contributions are maintained in a separate account from the franchisor's general funds. This means that the money contributed by franchisees for marketing purposes is kept distinct from Monicals Pizza's operational funds. These contributions are not to be used for the franchisor's general operating expenses, except for reasonable costs associated with administering the Marketing Fund itself.
Monicals Pizza aims to spend all Marketing Fund contributions on marketing programs and promotions within the fiscal year they are collected. If there are excess funds at the end of the fiscal year, these will be used first in the following fiscal year's expenditures, including any interest or earnings from the Marketing Fund, before using current contributions. This ensures that franchisees' contributions are prioritized for marketing activities.
While Monicals Pizza intends for the Marketing Fund to be ongoing, they retain the right to terminate it at any time. However, the Marketing Fund cannot be terminated until all contributions have been spent on advertising and promotional purposes or returned to franchisees on a pro rata basis, based on their total contributions during the fiscal years in which the remaining funds were collected. This protects franchisees by ensuring that any remaining funds are used for their intended purpose or returned equitably. An annual accounting of the Marketing Fund's operation will be prepared and made available to franchisees upon request, and Monicals Pizza has the right to have the fund audited by an independent certified public accountant at the fund's expense. Franchisees should note that the Marketing Fund is not a trust, and Monicals Pizza does not assume a fiduciary duty in administering it.