Who develops marketing and advertising programs for a franchise?

A: Generally, when you own a New York franchise, the franchise marketing and advertising program will be developed by the franchisor. This franchise marketing and advertising program will typically be supported by advertising fees from franchisees and franchisor outlets.

As the owner of a New York franchise, your contributions to the franchise marketing and advertising program will either be a percentage of your revenue, or a fixed periodic dollar amount. The formula depends on the nature of the business and the method by which the franchisor calculates the money that you must pay.

While franchisors usually administer their franchise marketing and advertising program directly, it may occasionally set up a separate corporation to do so. In some systems, franchisee cooperatives administer the system marketing programs.

When a fund is established for a franchise marketing and advertising program, the money may be used for: 

• advertising and promotion;
• public relations;
• market research;
• website development and maintenance; and
• the payment of expenses and salaries of the franchisor's advertising department. 

The use of these funds may be determined unilaterally by the franchisor, or, in some cases, it may be determined with input from the franchisee's advisory council.

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