Who provides and pays for advertising and promotional fees in a franchise?

Advertising and promotional fees are often

calculated on a percentage based on the franchisee's gross sales

and are usually collected once a month. In most cases, the

franchisee is responsible for paying for these fees, which are

often included in the franchise agreement.

Usually, the advertising and promotional fees

are separate from the royalties and general revenues. Most

franchisors determine a fixed percentage to charge for marketing

costs. They are also responsible for the management and delivery of

such assets. This means the franchisor has total responsibility for

the media assets provided for advertising and promotions, which

ensures continuity across the franchises.