Advertising Fund

In franchising, the advertising fund is a pooled budget contributed to by all franchisees, typically calculated as a percentage of gross sales. Managed by the franchisor, this fund is used for brand-wide marketing initiatives, such as TV commercials, digital campaigns, print media, and social media promotions. The goal is to build brand awareness and drive customer traffic to all franchise locations. The specific use of the fund, contribution percentage, and decision-making process are outlined in the Franchise Disclosure Document (FDD). Understanding how the advertising fund works is crucial when evaluating the marketing support provided by a franchise.