Our Practices

                                                                                                                 

Franchise Marketing Advertising Fund Risk Management

In addition to royalties, most franchisors collect fees from franchisees to finance the marketing and advertising for the franchise system. These contributions are spent for the promotion of the brand in the manner disclosed in the franchise disclosure document.

Managing a marketing/advertising fund is not always straightforward, however. Franchisors should consult with experienced counsel who specialize in this area of franchise law. Our team can offer franchisors practical advice in adequately administering funds and remaining transparent with franchisees. We can help set up separate business entities to simplify the tracking of collections and expenditures. We can prepare franchise disclosure documents and franchise agreements that include marketing/advertising fund provisions. We can advise on the appropriateness of expenditures and tax implications of managing a marketing/advertising fund. We can defend against allegations of improper use of marketing/advertising funds.

Quality marketing and advertising increases the value of brand reputation, which in turn inspires consumer confidence and drives growth. Whether you currently have a marketing/advertising fund or are looking to start one, our attorneys have the experience to help you mitigate risks and understand your responsibilities related to your franchise’s advertising fund.

Is your business ready to franchise or expand?

Whether you are exploring franchising for the first time or operating a well-developed franchise system, our franchise attorneys can answer your questions and advise you on the best course of action.

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At Fahey Schultz Burzych Rhodes PLC, we’ve been helping municipalities, franchised businesses, employers, and more with their legal needs since 2008. We’d love to learn how we can help you, too.