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Automotive Franchise Marketing Benchmarks (2026)

By Casey Slaughter Stanton, Founder & CEO, CMOx · Updated September 2026

Automotive franchises charge a median royalty of 6% of gross sales, across 40 franchise disclosure documents filed with the Minnesota Department of Commerce. 38% set a local marketing requirement. 7.5% require a designated marketing vendor, against 23% of all franchise systems.

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Automotive franchise fees

Fees: automotive franchises vs. all franchises (medians)
TermAutomotiveMiddle halfAll franchisesSample
Royalty6%4% to 6%6%n=21, small sample

What automotive FDDs say about marketing money

Marketing clauses: share of FDDs that include each
ClauseAutomotiveAll franchisesSample
Sets a local marketing requirementRequires local spend as a percentage of sales or a dollar minimum.38%46%n=40, small sample
Requires a designated marketing vendorFranchisees must buy marketing, advertising, digital or website services from a designated or sole vendor.7.5%23%n=40, small sample
Ad fund need not be spent in your marketNo obligation to spend fund money in the franchisee's market or in proportion to what it paid in.45%54%n=40, small sample
Ad fund may pay franchisor adminThe fund may pay the franchisor's administrative costs or the salaries of the people who run it.40%64%n=40, small sample
Co-op membership mandatoryFranchisees must join a regional advertising co-op if one forms.28%31%n=40, small sample
Discloses supplier rebatesThe franchisor receives rebates or commissions from suppliers franchisees must use.65%72%n=40, small sample
Franchisor sells marketing servicesThe franchisor or an affiliate is an approved supplier of marketing services to its own franchisees.5.0%7.6%n=40, small sample
Franchisor approves local adsFranchisee advertising needs franchisor approval before it runs.70%71%n=40, small sample

Where automotive ad funds go

Across 25 automotive FDDs that disclose last year's ad fund spending, the average fund dollar went 45% to media placement and 16% to administration, against 39% and 18% across all franchises. 16% of these funds spent a quarter or more on administration.

  • Media placement 45%
  • Production and creative 16%
  • Administration 16%
  • Website, software and technology 10%
  • Other 13%
  • Public relations 1%
The average automotive ad fund dollar, most recent fiscal year (n=25, small sample)

Where franchise ad funds go, across all industries

What growing systems do differently

Among automotive systems with three full years of Item 20 outlet data, 55% had fewer units at the end than at the start, and median unit growth was -7% (n=20, small sample). Across all franchise systems, 34% shrank.

Among personal & family services systems, those that require a designated marketing vendor shrank 17% of the time (n=24, small sample), against 25% without one (n=60). Growing systems ask franchisees for less local marketing money and direct more of it. See the full comparison.

These are associations across current filings, not proof that any clause causes growth.

Frequently asked questions

What is the average royalty for a automotive franchise?

The median automotive franchise royalty is 6% of gross sales, and the middle half of FDDs charge 4% to 6% (21 FDDs). Across all franchises the median is 6%.

Do automotive franchises require local marketing spend?

38% of automotive FDDs set a local marketing requirement, as a percentage of sales or a dollar minimum.

About these figures

Medians and shares across 40 automotive franchise disclosure documents filed with the Minnesota Department of Commerce, 92% of them 2026 filings. They describe the market, not any one brand's terms. No figure is shown with fewer than 20 FDDs behind it; 20 to 49 are marked small sample. Full method and every national figure: Franchise Marketing Statistics (2026). CC BY 4.0: cite freely with a link to this page.

Other personal & family services benchmarks:

All franchise marketing benchmarks · Franchise marketing statistics (2026)

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