Every franchisee wants to know what they are paying, and what they will get in return.
When it comes down to it, the brand royalty is an easy pill for franchisees to swallow. They didn't come up with the brand concept, and therefore are generally ok with paying a recurring royalty for all the benefits that come with being a part of the brand.
The ad fund fee, on the other hand, well.... that's are an entirely different story.
It's the ad fund that causes a lot of unneeded tension between franchisees and franchisors. But, it doesn't have to be that way:)
We shared our POV with QSR Magazine recently, discussing how to solve this Franchise Ad Fund problem once and for all by taking a few steps to improve ad fund strategies. Check out the full article in QSR Magazine to learn about:
Launching your first ad fund, or improving an existing ad fund marketing strategy, with a per-location approach is challenging, but the payoff of franchisee happiness, brand growth, and lower costs across the entire system is well worth the effort.