Franchisor Advertising

Question

What are the requirements regarding advertising?

Answer

Over the course of the financial year Franchisors must spend all marketing contributions on finding work for Franchisees, minus up to 5% for administration.

Within five months of the end of the financial year, Franchisees must be given an annual financial report, to be audited (at the fund’s expense) unless 75% of Franchisees in the Region state in writing that they do not require an audit. This report will be provided to the National Franchisor upon request. Monthly reports to Franchisees are highly advisable.

Example below of allowable advertising expenses.

• Page:
  What happens if franchisees don't vote in referendums to determine if an advertising fund is required to be audited?
• Page:
  How to complete and sign your Regional Franchise Documents
• Page:
  Can money from the marketing fund be spent on individual franchisees and regions?
• Page:
  Franchisor Manual (Part 1)
• Page:
  Can my franchise/franchisor business sponsor local organisations (e.g. sporting clubs)?