I understand that being part of a franchise means having to pay royalties, marketing and management fees. But do I have a say in where the marketing money is spent?

Be sure to read your franchise agreement carefully to understand the responsibilities of the franchisor with marketing fees. Contracts typically state that the franchisor has total control over how the money is spent. One of the great advantages of being part of a franchise is that the small contribution made by all franchisees amounts to […]


Be sure to read your franchise agreement carefully to understand the responsibilities of the franchisor with marketing fees. Contracts typically state that the franchisor has total control over how the money is spent. One of the great advantages of being part of a franchise is that the small contribution made by all franchisees amounts to a substantial sum that can be used in mass media advertising campaigns – such as TV, radio, newspapers and magazines – that are typically out of the budget of individuals.

On the other hand, it’s your responsibility and part of your due diligence to speak to as many franchisees as possible to see what they think about how their marketing contributions are spent and whether it is effective or not. Some franchisors will use the money gained from marketing fees to conduct only regional or national advertising, leaving local advertising up to the individual franchisee.

Franchise Zone
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Franchise Zone is published by Entrepreneur Media SA. It offers advice and franchising opportunities in South Africa.

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