Marketing Fund
A cooperative advertising fund where franchisees contribute a percentage of sales (typically 1-4%) for system-wide marketing campaigns managed by the franchisor.
Related Terms
Royalty Rate
An ongoing fee paid by franchisees to franchisors, typically 4-8% of gross sales, in exchange for the right to operate under the brand and receive ongoing support.
Local Store Marketing
Marketing activities and spending directed by individual franchisees to drive traffic in their specific trade area, often required at 1-2% of sales.
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