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The economicsMarketing fund
A pooled contribution from partners funding brand-level marketing run by the franchisor, separate from local outlet marketing spend.
Where this sits
The flow of money between the parties determines the health of the whole system. If partners do not profit, no system is sustainable however strong the brand.
In practice
This section summarises United States federal regulation (16 CFR Part 436) as published by the Federal Trade Commission. Rules change and differ by country — check the source before acting. For reference only; not legal advice.
Where an advertising fund exists, US disclosure rules require the franchisor to state who contributes to it, how much each franchisee must contribute and whether others contribute at a different rate, and — the question operators most often forget to ask — whether franchisor-owned outlets contribute too.
That last point is the one to check first. A fund that company-owned units do not pay into is a fund financed by franchisees for a brand the franchisor also benefits from. It may still be a fair arrangement; it should be a conscious one.
Source: 16 CFR § 436.5(k) — Item 11: Franchisor's Assistance, Advertising, Computer Systems, and Training · Reviewed: 2026-09-02