Who provides and pays for advertising and promotional items in a franchise business?
2007-03-02 03:10:56 · 2 answers · asked by Kick_Fanatic_Jordan_Radic 2 in Business & Finance ➔ Other - Business & Finance
You as a franchisee would generally contribute or pay for this through royalties. Most franchisors charge a royalty on gross sales (taken before any expenses are deducted) as well as a royalty for marketing and/or advertising, also as a percentage of gross sales.
Monies collected by the parent company from marketing/advertising royalties should be allocated as such, but whether in one major campaign, tv, print or otherwise are at the franchisor's discretion. The fees payable would be stated within the UFOC (Uniform Franchise Offering Circular) that the franchisor would be required to provide you before investing.
Good luck!
2007-03-03 05:55:25 · answer #1 · answered by fanofmawson 3 · 0⤊ 0⤋
every owner
2007-03-02 11:17:13 · answer #2 · answered by golferwhoworks 7 · 0⤊ 0⤋