marketing fund

Marketing funds for franchises

Changes to the Franchising Code of Conduct (Code) which took effect on 1 January 2015 altered the obligations for Franchisor’s who operate marketing funds.  Following the changes, Franchisors must, in addition to including details of the fund in the Franchise Agreement:

  • include the details of the marketing fund in the disclosure document;
  • prepare and maintain financial statements concerning the marketing fund;
  • keep all funds received towards the marketing fund in a separate account;
  • make their own contributions towards the marketing fund; and
  • use the marketing fund exclusively for marketing.

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