What is the 'Marketing Fund' for Monicals Pizza franchises?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
"Marketing Fund" has the meaning given to such term in Section 11.3;
"Marketing Fund Contribution" has the meaning given to such term in Section 11.3;
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 the 2025 Monicals Pizza Franchise Disclosure Document, the "Marketing Fund" is referenced within the definitions section of the agreement, indicating its importance in the franchise relationship. The document specifies that a "Marketing Fund Contribution" also has a defined meaning within Section 11.3, suggesting that franchisees are required to contribute to this fund.
The FDD outlines how Monicals Pizza manages these Marketing Fund Contributions. These contributions are kept in a separate account from the franchisor's general funds and are intended to be used for marketing programs and promotions. Monicals Pizza aims to spend these contributions within the fiscal year they are collected. If there are excess funds at the end of the year, they will be used first in the following fiscal year, including any interest or earnings from the fund.
Monicals Pizza retains the right to terminate the Marketing Fund at any time, but only after all contributions have been used for advertising and promotional purposes or returned to franchisees on a pro rata basis. Each Monicals Restaurant operated by the franchisor or its affiliates contributes to the Marketing Fund at the same rate as franchisees. An annual accounting of the Marketing Fund's operation is prepared and available to franchisees upon request, and the franchisor can have the fund audited by an independent CPA at the fund's expense. The FDD explicitly states that the Marketing Fund is not a trust, and Monicals Pizza does not assume a fiduciary duty in administering it.