Franchise Marketing Statistics (2026)
By Casey Slaughter Stanton, Founder & CEO, CMOx · Updated
What franchisees agree to pay for marketing, and what the franchisor may do with the money. 140 statistics from CMOx’s analysis of 1,244 franchise disclosure documents (FDDs) filed with the Minnesota Department of Commerce, 92% of them 2026 filings. Every statistic has its own link. Cite freely with attribution.
On this page
- Key takeaways
- About the data
- Ad funds
- What the ad fund may pay for
- Governance and transparency
- Local marketing requirements
- Technology and marketing-tech fees
- Grand-opening marketing
- Designated vendors and supplier rebates
- Growing vs. shrinking systems
- By category
- Five questions every franchisor should answer
- About the author
- Methodology
- How to cite
- FAQ
Key takeaways
- 54% of FDDs state the franchisor has no obligation to spend ad fund money in the franchisee's market or in proportion to what the franchisee paid in. See the data
- 64% of FDDs allow the ad fund to pay the franchisor's administrative costs or the salaries of the people who run the fund. See the data
- 22% of FDDs permit the ad fund to be used to recruit new franchisees. See the data
- Only 1.5% of FDDs say the ad fund is independently audited. See the data
- 36% of FDDs explicitly disclaim any fiduciary duty over the ad fund. See the data
- Franchise systems that require a designated marketing vendor shrank 23% of the time, against 39% of systems without one. See the data
- 46% of FDDs impose a local marketing spending requirement, as a percentage of sales or a dollar minimum. See the data
- 73% of FDDs disclose that the franchisor receives rebates or commissions from suppliers franchisees must use. See the data
- 48% of FDDs do not say whether company-owned locations pay into the ad fund. See the data
- The median franchise technology fee is $274 a month. See the data
Where does your system sit? Compare your franchise’s marketing terms with your industry →
About the data
This analysis covers 1,244 franchise disclosure documents filed with the Minnesota Department of Commerce.
Source: CMOx Franchise Marketing Statistics (n=1,244)
434 franchise systems in the corpus have three full years of Item 20 outlet data, the basis for every growing-versus-shrinking comparison.
Source: CMOx Franchise Marketing Statistics (n=434)
Ad funds
A franchise ad fund is the pooled marketing contribution franchisees pay to the franchisor, usually a percentage of gross sales. The median is 2% of sales.
The ad fund is also called the brand fund or marketing fund. Fee percentages here are medians across many FDDs; they describe the market, not any one brand.
The median national ad fund contribution is 2% of gross sales.
Source: CMOx Franchise Marketing Statistics (n=640)
73% of FDDs that state a percentage ad fund set it at 2% of sales or less.
Source: CMOx Franchise Marketing Statistics (n=640)
The median royalty is 6% of gross sales.
Source: CMOx Franchise Marketing Statistics (n=726)
When the ad fund and the local marketing minimum are added together, the median mandated marketing spend is 5% of sales.
Source: CMOx Franchise Marketing Statistics (n=306)
Only 41 of 1,238 FDDs (3.3%) disclose a cap on future ad fund increases.
Source: CMOx Franchise Marketing Statistics (n=1,238)
Where a cap on ad fund increases is disclosed, the median cap is 3% of sales. (small sample)
Source: CMOx Franchise Marketing Statistics (n=41)
What this means for franchisors. The rate is not the story. Most systems charge about 2%. What separates them is what happens to the money after it is collected, and who answers for it.
What the ad fund may pay for
Item 11 of an FDD says what the franchisor may spend the ad fund on. In 64% of FDDs that includes the franchisor's own administrative costs, and in 54% the money need not be spent in the franchisee's market.
These clauses decide whether a franchisee's contribution comes back to their market as revenue per location.
54% of FDDs state the franchisor has no obligation to spend ad fund money in the franchisee's market or in proportion to what the franchisee paid in.
Source: CMOx Franchise Marketing Statistics (n=1,238)
64% of FDDs allow the ad fund to pay the franchisor's administrative costs or the salaries of the people who run the fund.
Source: CMOx Franchise Marketing Statistics (n=1,238)
22% of FDDs permit the ad fund to be used to recruit new franchisees.
Source: CMOx Franchise Marketing Statistics (n=274)
51% of FDDs state categorically that no ad fund money is used to sell franchises.
Source: CMOx Franchise Marketing Statistics (n=274)
21% of FDDs do not address whether the ad fund can be used to recruit franchisees at all.
Source: CMOx Franchise Marketing Statistics (n=274)
Only 1.8% of FDDs disclose what percentage of the ad fund goes to franchise sales.
Source: CMOx Franchise Marketing Statistics (n=274)
57% of FDDs state that unspent ad fund money rolls over to the next year.
Source: CMOx Franchise Marketing Statistics (n=274)
31% of FDDs require franchisees to join a regional advertising co-op if one forms in their area.
Source: CMOx Franchise Marketing Statistics (n=1,238)
What this means for franchisors. Each of these clauses is legal, and most are reasonable. A fund needs people to run it. The question every one of them leaves open: can anyone show a franchisee what their contribution bought in their market? If the answer depends on who you ask, nobody owns it.
Governance and transparency
Ad fund governance covers who checks the money: audits, statements and councils. Only 1.5% of FDDs commit to an independent audit.
Figures marked n=274 come from a sample of FDDs coded by hand, with every answer checked against a quote from the document.
36% of FDDs explicitly disclaim any fiduciary duty over the ad fund.
Source: CMOx Franchise Marketing Statistics (n=274)
Only 1.5% of FDDs say the ad fund is independently audited.
Source: CMOx Franchise Marketing Statistics (n=274)
61% of FDDs state that the ad fund is not audited or is not required to be audited.
Source: CMOx Franchise Marketing Statistics (n=274)
61% of FDDs make an annual ad fund statement available to franchisees.
Source: CMOx Franchise Marketing Statistics (n=274)
Only 4.0% of FDDs send franchisees the ad fund statement without being asked.
Source: CMOx Franchise Marketing Statistics (n=274)
29% of FDDs describe an advertising or franchisee advisory council that actually exists today.
Source: CMOx Franchise Marketing Statistics (n=274)
28% of FDDs state the marketing council is advisory only.
Source: CMOx Franchise Marketing Statistics (n=274)
20% of FDDs commit company-owned locations to contribute to the ad fund on the same basis as franchisees.
Source: CMOx Franchise Marketing Statistics (n=274)
24% of FDDs state company-owned locations are not required to contribute to the ad fund.
Source: CMOx Franchise Marketing Statistics (n=274)
48% of FDDs do not say whether company-owned locations pay into the ad fund.
Source: CMOx Franchise Marketing Statistics (n=274)
What this means for franchisors. Almost no system gives franchisees a binding vote or commits to an audit. That is normal. It also means trust in the fund rests entirely on how well it is run and reported. The burden of proof sits with the franchisor.
Local marketing requirements
A local marketing requirement is what a franchisee must spend in their own market on top of the ad fund. 46% of FDDs set one; the median is 3% of sales or $1,500 a month.
46% of FDDs impose a local marketing spending requirement, as a percentage of sales or a dollar minimum.
Source: CMOx Franchise Marketing Statistics (n=1,244)
54% of FDDs set no local marketing spending requirement at all.
Source: CMOx Franchise Marketing Statistics (n=1,244)
The median local marketing requirement is 3% of gross sales.
Source: CMOx Franchise Marketing Statistics (n=375)
The middle half of local marketing requirements falls between 2% and 5% of sales.
Source: CMOx Franchise Marketing Statistics (n=375)
Where a dollar minimum is set, the median local marketing floor is $1,500 a month.
Source: CMOx Franchise Marketing Statistics (n=308)
The middle half of local marketing dollar floors falls between $800 and $3,000 a month.
Source: CMOx Franchise Marketing Statistics (n=308)
In a hand-verified sample, 71% of FDDs require some local marketing activity, whether or not they set a spending amount.
Source: CMOx Franchise Marketing Statistics (n=274)
71% of FDDs require franchisor approval before a franchisee runs its own advertising.
Source: CMOx Franchise Marketing Statistics (n=1,244)
88% of FDDs let franchisees create their own marketing materials, subject to franchisor approval.
Source: CMOx Franchise Marketing Statistics (n=274)
2.9% of FDDs prohibit franchisees from creating their own marketing materials.
Source: CMOx Franchise Marketing Statistics (n=274)
65% of FDDs permit a franchisee to hire its own outside marketing agency.
Source: CMOx Franchise Marketing Statistics (n=274)
4.7% of FDDs allow only a franchisor-designated agency.
Source: CMOx Franchise Marketing Statistics (n=274)
What this means for franchisors. Requiring local spend is not the same as directing it. When most FDDs let each franchisee hire any agency they like, every owner is handed a marketing department to build alone. Some will. Most won't.
Technology and marketing-tech fees
A franchise technology fee is a recurring charge for the software and systems the franchisor requires. 63% of FDDs charge one; the median is $274 a month.
The median franchise technology fee is $274 a month.
Source: CMOx Franchise Marketing Statistics (n=782)
The middle half of franchise technology fees runs from $121 to $500 a month.
Source: CMOx Franchise Marketing Statistics (n=782)
31% of franchise technology fees are $500 a month or more.
Source: CMOx Franchise Marketing Statistics (n=782)
Where FDDs charge separate marketing-technology fees (digital marketing programs, CRM, call center, website, SEO, listings), the median is $250 a month on top of the technology fee.
Source: CMOx Franchise Marketing Statistics (n=163)
The top quarter of FDDs with marketing-technology add-ons charge more than $534 a month for them.
Source: CMOx Franchise Marketing Statistics (n=163)
What this means for franchisors. A technology fee buys software. It does not buy anyone accountable for turning that software into revenue per location.
Grand-opening marketing
Grand-opening marketing is the launch spend a new franchisee must make around opening day. 60% of FDDs list it in Item 7; the median stated window is 60 days.
Grand-opening dollar budgets are held back until every figure is checked against its source page.
Where a window is stated, the median grand-opening marketing period is 60 days.
Source: CMOx Franchise Marketing Statistics (n=257)
Designated vendors and supplier rebates
A designated marketing vendor is a supplier franchisees must use for marketing services. 23% of FDDs require one, and 73% disclose that the franchisor earns rebates or commissions from required suppliers.
23% of FDDs require franchisees to buy marketing, advertising, digital or website services from a designated or sole vendor.
Source: CMOx Franchise Marketing Statistics (n=1,238)
7.6% of FDDs name the franchisor or an affiliate as an approved supplier of marketing services to its own franchisees.
Source: CMOx Franchise Marketing Statistics (n=1,238)
3.5% of FDDs name the franchisor or an affiliate as the only approved supplier of some marketing service.
Source: CMOx Franchise Marketing Statistics (n=1,238)
88% of FDDs name at least one required vendor, most often software, point-of-sale or CRM.
Source: CMOx Franchise Marketing Statistics (n=274)
5.5% of FDDs require a designated call center or answering service.
Source: CMOx Franchise Marketing Statistics (n=274)
3.3% of FDDs require a designated advertising or marketing agency.
Source: CMOx Franchise Marketing Statistics (n=274)
73% of FDDs disclose that the franchisor receives rebates or commissions from suppliers franchisees must use.
Source: CMOx Franchise Marketing Statistics (n=1,238)
Where disclosed, the median franchisor revenue from franchisees' required purchases is $1,153,193 a year.
Source: CMOx Franchise Marketing Statistics (n=193)
For the top quarter of those franchisors, required purchases produce more than 17.7% of total revenue.
Source: CMOx Franchise Marketing Statistics (n=500)
What this means for franchisors. A designated vendor is where a system decides local execution instead of hoping for it. It can also create a conflict when the franchisor earns rebates on the same purchases. Both can be true. The answer to both is the same: someone accountable for results, not just the relationship.
Growing vs. shrinking systems
Growing franchise systems ask franchisees for less local marketing money and direct more of it. Shrinking systems do the reverse: a median 3% of sales required locally against 2%, and a designated marketing vendor in 15% of systems against 27%.
These comparisons use the 434 systems with three full years of Item 20 outlet data. They are associations across current filings, not proof that any clause causes growth. The pattern held within size bands and within categories, but neither effect is fully removed. Unit growth follows revenue per location: systems whose open locations earn more keep them open and sell more of them.
Burden versus control: growing and shrinking franchise systems
Median mandated local marketing: growing systems 2% of sales, shrinking 3%. Require a designated marketing vendor: growing 27%, shrinking 15%.
Growing systems Shrinking systems
Shrinking systems closed a median 6.9% of their locations over three years.
Source: CMOx Franchise Marketing Statistics (n=114)
Growing systems closed a median 3.6% of their locations over three years.
Source: CMOx Franchise Marketing Statistics (n=222)
Shrinking systems mandate a median local marketing spend of 3% of sales. (small sample)
Source: CMOx Franchise Marketing Statistics (n=44)
Growing systems mandate a median local marketing spend of 2% of sales.
Source: CMOx Franchise Marketing Statistics (n=85)
23% of franchise systems that require a designated marketing vendor shrank over three years.
Source: CMOx Franchise Marketing Statistics (n=95)
Franchise systems that require a designated marketing vendor grew a median +23.5% in unit count over three years.
Source: CMOx Franchise Marketing Statistics (n=95)
39% of franchise systems without a designated marketing vendor shrank over three years.
Source: CMOx Franchise Marketing Statistics (n=326)
Franchise systems without a designated marketing vendor grew a median +7.1% in unit count over three years.
Source: CMOx Franchise Marketing Statistics (n=326)
31% of franchise systems that set a local marketing requirement shrank over three years.
Source: CMOx Franchise Marketing Statistics (n=175)
Franchise systems that set a local marketing requirement grew a median +15.9% in unit count over three years.
Source: CMOx Franchise Marketing Statistics (n=175)
38% of franchise systems with no local marketing requirement shrank over three years.
Source: CMOx Franchise Marketing Statistics (n=246)
Franchise systems with no local marketing requirement grew a median +6.7% in unit count over three years.
Source: CMOx Franchise Marketing Statistics (n=246)
25% of franchise systems whose franchisor sells marketing services to franchisees shrank over three years. (small sample)
Source: CMOx Franchise Marketing Statistics (n=32)
Franchise systems whose franchisor sells marketing services to franchisees grew a median +27.0% in unit count over three years. (small sample)
Source: CMOx Franchise Marketing Statistics (n=32)
36% of franchise systems whose franchisor does not sell marketing services shrank over three years.
Source: CMOx Franchise Marketing Statistics (n=389)
Franchise systems whose franchisor does not sell marketing services grew a median +9.2% in unit count over three years.
Source: CMOx Franchise Marketing Statistics (n=389)
25% of systems with both a designated marketing vendor and a local marketing requirement shrank over three years.
Source: CMOx Franchise Marketing Statistics (n=57)
41% of systems with neither a designated marketing vendor nor a local marketing requirement shrank over three years.
Source: CMOx Franchise Marketing Statistics (n=208)
Systems that require co-op membership closed a median 3.3% of locations over three years.
Source: CMOx Franchise Marketing Statistics (n=98)
Systems that do not require co-op membership closed a median 5.1% of locations over three years.
Source: CMOx Franchise Marketing Statistics (n=238)
Among systems with 10 to 49 units, 23% of those with a designated marketing vendor shrank. (small sample)
Source: CMOx Franchise Marketing Statistics (n=39)
Among systems with 10 to 49 units, 27% of those without a designated marketing vendor shrank.
Source: CMOx Franchise Marketing Statistics (n=89)
Among systems with 50 to 199 units, 13% of those with a designated marketing vendor shrank. (small sample)
Source: CMOx Franchise Marketing Statistics (n=31)
Among systems with 50 to 199 units, 45% of those without a designated marketing vendor shrank.
Source: CMOx Franchise Marketing Statistics (n=129)
Among systems with 200+ units, 36% of those with a designated marketing vendor shrank. (small sample)
Source: CMOx Franchise Marketing Statistics (n=25)
Among systems with 200+ units, 42% of those without a designated marketing vendor shrank.
Source: CMOx Franchise Marketing Statistics (n=108)
What this means for franchisors. Shrinking systems ask franchisees for more local money on paper and give them less direction. Growing systems ask for less and decide where it goes. Freedom in an FDD is what a franchisor gives when nobody owns the outcome.
Franchise marketing statistics by category
Twelve service categories, each FDD placed by what its Item 1 says the business does. No figure is shown with fewer than 20 FDDs behind it. For 19 industries, including restaurants, retail and hotels, and a tool that compares your own terms, see Franchise Marketing Benchmarks by Industry.
Repair, remodel and home improvement
Based on 83 FDDs. Full home improvement franchise benchmarks →
The median repair, remodel and home improvement franchise royalty is 6% of sales.
Source: CMOx Franchise Marketing Statistics (n=52)
The median repair, remodel and home improvement franchise ad fund contribution is 2% of sales. (small sample)
Source: CMOx Franchise Marketing Statistics (n=48)
The median repair, remodel and home improvement franchise local marketing requirement is 5% of sales. (small sample)
Source: CMOx Franchise Marketing Statistics (n=27)
The median repair, remodel and home improvement franchise technology fee is $345 a month.
Source: CMOx Franchise Marketing Statistics (n=63)
Fitness
Based on 61 FDDs. Full fitness franchise benchmarks →
The median fitness franchise royalty is 7% of sales. (small sample)
Source: CMOx Franchise Marketing Statistics (n=43)
The median fitness franchise ad fund contribution is 2% of sales. (small sample)
Source: CMOx Franchise Marketing Statistics (n=37)
The median fitness franchise technology fee is $350 a month. (small sample)
Source: CMOx Franchise Marketing Statistics (n=48)
Childcare and education
Based on 72 FDDs. Full childcare and education franchise benchmarks →
The median childcare and education franchise royalty is 7% of sales.
Source: CMOx Franchise Marketing Statistics (n=53)
The median childcare and education franchise ad fund contribution is 2% of sales. (small sample)
Source: CMOx Franchise Marketing Statistics (n=41)
The median childcare and education franchise local marketing requirement is 3% of sales. (small sample)
Source: CMOx Franchise Marketing Statistics (n=23)
The median childcare and education franchise technology fee is $280 a month.
Source: CMOx Franchise Marketing Statistics (n=52)
Senior and home care
Based on 51 FDDs. Full senior and home care franchise benchmarks →
The median senior and home care franchise royalty is 5.5% of sales. (small sample)
Source: CMOx Franchise Marketing Statistics (n=38)
The median senior and home care franchise ad fund contribution is 2% of sales. (small sample)
Source: CMOx Franchise Marketing Statistics (n=34)
The median senior and home care franchise technology fee is $300 a month. (small sample)
Source: CMOx Franchise Marketing Statistics (n=39)
Beauty, salon and med spa
Based on 46 FDDs (small sample). Full beauty, salon and med spa franchise benchmarks →
The median beauty, salon and med spa franchise royalty is 6% of sales. (small sample)
Source: CMOx Franchise Marketing Statistics (n=36)
The median beauty, salon and med spa franchise ad fund contribution is 2% of sales. (small sample)
Source: CMOx Franchise Marketing Statistics (n=31)
The median beauty, salon and med spa franchise technology fee is $338 a month. (small sample)
Source: CMOx Franchise Marketing Statistics (n=34)
Pet services
Based on 39 FDDs (small sample). Full pet services franchise benchmarks →
The median pet services franchise royalty is 6.75% of sales. (small sample)
Source: CMOx Franchise Marketing Statistics (n=24)
The median pet services franchise ad fund contribution is 2% of sales. (small sample)
Source: CMOx Franchise Marketing Statistics (n=24)
The median pet services franchise technology fee is $350 a month. (small sample)
Source: CMOx Franchise Marketing Statistics (n=38)
Auto services
Based on 40 FDDs (small sample). Full automotive franchise benchmarks →
The median auto services franchise royalty is 6% of sales. (small sample)
Source: CMOx Franchise Marketing Statistics (n=21)
Restoration and remediation
Based on 25 FDDs (small sample). Full restoration franchise benchmarks →
The median restoration and remediation franchise technology fee is $492 a month. (small sample)
Source: CMOx Franchise Marketing Statistics (n=24)
Junk removal and hauling
Based on 21 FDDs (small sample). Compare junk removal with every franchise industry →
Health and wellness clinics
Based on 38 FDDs (small sample). Full health and wellness clinic franchise benchmarks →
The median health and wellness clinic franchise royalty is 7% of sales. (small sample)
Source: CMOx Franchise Marketing Statistics (n=24)
The median health and wellness clinic franchise ad fund contribution is 2% of sales. (small sample)
Source: CMOx Franchise Marketing Statistics (n=20)
The median health and wellness clinic franchise technology fee is $500 a month. (small sample)
Source: CMOx Franchise Marketing Statistics (n=26)
Cleaning and janitorial
Based on 53 FDDs. Full cleaning and janitorial franchise benchmarks →
The median cleaning and janitorial franchise royalty is 6% of sales. (small sample)
Source: CMOx Franchise Marketing Statistics (n=29)
The median cleaning and janitorial franchise ad fund contribution is 2% of sales. (small sample)
Source: CMOx Franchise Marketing Statistics (n=20)
The median cleaning and janitorial franchise technology fee is $155 a month. (small sample)
Source: CMOx Franchise Marketing Statistics (n=37)
Lawn, tree and landscaping
Based on 22 FDDs (small sample). Compare lawn and landscaping with every franchise industry →
Five questions every franchisor should be able to answer
The FDD tells you what a system is allowed to do with marketing money. It does not tell you whether anyone owns the result. These questions do.
- Who, by name, is accountable for turning the ad fund into revenue per location?
- What did last year's fund buy, market by market, and could a franchisee see it?
- Is local marketing directed by the system, or only required of the franchisee?
- Do company-owned locations pay into the fund on the same basis as franchisees?
- If you asked your franchisees whether the fund works, what would they say?
If any answer is “it depends” or “I would have to check,” the gap is not the budget. It is leadership.
About the author
Casey Slaughter Stanton is the founder and CEO of CMOx and author of The Fractional CMO Method, a #1 Wall Street Journal bestseller. CMOx provides fractional CMOs to franchise systems and PE-backed multi-location companies: senior marketing leadership that owns revenue per location, without a full-time executive hire.
Brands we’ve worked with include The Vital Stretch, The Exercise Coach, Pvolve, Select Dental Management and Joshua Tree Experts, along with others we are not able to name.
Methodology
- Source. 1,244 franchise disclosure documents filed with the Minnesota Department of Commerce and retrieved from its public database. 92% of the FDDs analyzed (1,146 of 1,244) are 2026 filings.
- What was read. Items 6 (other fees), 7 (initial investment), 8 (restrictions on sources of products and services), 11 (advertising) and 20 (outlets).
- Three methods, labeled by n. Clause flags (n=1,238) come from pattern matching, with the quoting page stored for every flag. Governance answers (n=274) were coded by hand and checked against a quote. Fee percentages come from an automated extraction and are reported only as medians across many FDDs, never for a single brand.
- Growth. Growing and shrinking are measured from Item 20 unit counts over three fiscal years, for the 434 systems with complete tables and at least 10 units.
- Suppression. No statistic is shown when fewer than 20 FDDs stand behind it. Figures from 20 to 49 FDDs are marked as a small sample.
- Limits. FDDs describe what a franchisor may do, not what it does. Growth comparisons are associations, not causes. Grand-opening dollar amounts are held back until each is verified against its source page.
- Data. Download every statistic as CSV (CC BY 4.0).
How to cite these statistics
Link to the individual statistic (each has its own anchor) or to this page. Suggested citation:
CMOx, "Franchise Marketing Statistics (2026)," analysis of 1,244 FDDs filed with the Minnesota Department of Commerce, updated September 26, 2026. https://cmox.co/franchise-marketing-statistics/
The statistics on this page are licensed under Creative Commons Attribution 4.0 (CC BY 4.0). Use them in articles, decks and reports with a link to this page.
Frequently asked questions
What is the average franchise ad fund fee?
The median national ad fund contribution is 2% of gross sales, across 640 FDDs that state a percentage. 73% of FDDs that state a percentage ad fund set it at 2% of sales or less. Many franchisees also owe local marketing on top: 46% of FDDs set a local requirement. When both are stated, the median total is 5% of sales.
What is FDD Item 11?
Item 11 of a franchise disclosure document covers the franchisor's assistance, including advertising: how the ad fund is collected and spent, whether a marketing council exists, local advertising requirements and co-ops. 54% of FDDs state the franchisor has no obligation to spend ad fund money in the franchisee's market or in proportion to what the franchisee paid in.
Can a franchisor use the ad fund to sell franchises?
Some can. 22% of FDDs permit the ad fund to be used to recruit new franchisees. 51% of FDDs state categorically that no ad fund money is used to sell franchises. 21% of FDDs do not address whether the ad fund can be used to recruit franchisees at all.
Is a franchise ad fund audited?
Rarely. Only 1.5% of FDDs say the ad fund is independently audited. 61% of FDDs make an annual ad fund statement available to franchisees. 36% of FDDs explicitly disclaim any fiduciary duty over the ad fund.
How much do franchisees spend on local marketing?
46% of FDDs impose a local marketing spending requirement, as a percentage of sales or a dollar minimum. The median local marketing requirement is 3% of gross sales. Where a dollar minimum is set, the median local marketing floor is $1,500 a month.
What is a franchise technology fee?
A recurring fee for the software and systems the franchisor requires. 63% of FDDs charge a recurring technology fee. The median franchise technology fee is $274 a month.
