In addition to royalties, most franchisors will collect amounts from franchisees for brand marketing and advertising. Typically, these are set as a percentage of sales for each franchisee. The franchisor has control over the collection and the spending of the advertising funds, which should be used for the overall promotion of the restaurant brand that …
If you are looking to franchise your restaurant brand or are relatively new to franchising, it is important to understand your requirements for providing financial information within your Franchise Disclosure Document (FDD). The first requirement relates to financial information of your franchising entity. Item 21 in the FDD requires you to provide copies of your …
Being a franchisor in today’s competitive business world, and under the scrutiny of the federal government, brings about many issues that you need to keep track of to remain competitive and compliant with legal matters. Many franchise related lawsuits have elevated issues to the forefront and new technologies have challenged the franchisor/franchisee relationship. Below is …