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How Is Your Franchisor Using Your Marketing Fund?

By Published On: August 28th, 2019

Most franchisees are required to pay into an advertising marketing fund, which the franchisor controls. What is your franchisor doing with all that money, and is it directly benefiting your franchise? In a perfect world, your franchisor would use the funds exclusively for advertising and marketing the brand, and you (and other franchisees) would have input in determining how the money was used. Let’s make this perfect world even better and say that the franchisor would even provide regular reports to you about fund activities. 

Unfortunately, we do not live in a perfect world. Franchisors have been known to abuse the marketing fund in a variety of ways and to keep franchisees in the dark about where their money is going. This is why we plan to host an important seminar at the upcoming AAFD Leadership Summit and Annual Conference dedicated to franchise marketing fund issues. 

In this seminar, we’ll: 

  • Review the ad fund provision in most franchise agreement 
  • Highlight the most common abuses of the marketing fund 
  • Discuss remedies to marketing fund abuse 
  • Discuss how franchisees can seek input into the marketing fund 
  • Evaluate marketing fund ROI 

If this issue is important to you, join us this September 15 – 18th for our Leadership Summit and Annual Conference in Mesa, Arizona. We hope to see you there!  

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Written by : AAFD

The AAFD seeks to improve the franchising climate by providing resources to franchise associations, franchisees, franchise owners and prospective Franchise Buyers.