For some drafters of franchise agreements, the provisions
relating to a network's advertising fund are similar from one
network to another and do not require any particular attention.
Shouldn't they simply stipulate the obligation of each
franchisee to contribute to an advertising fund managed by the
franchisor, the rate (or amount) of the advertising contribution
and the terms of payment, somewhat like a royalty?
In reality, this is far from sufficient!
In recent years, advertising funds and their management by
franchisors have been the subject of increasing questioning, and
even disputes, by franchisees and franchisees'
associations.
One of the main causes of these questions and disputes often
results from the fact that the franchise agreement is silent on
several issues related to the management by the franchisor of the
advertising fund.
