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Did the parent brand fail to fully advertise for your franchise?

On Behalf of | Sep 20, 2021 | Franchise Law |

Starting a franchise can be easier than starting a business from scratch. You get to draw on an established customer base and a well-developed brand. You don’t have to perfect processes or advertising on your own because the parent company will handle that for you.

However, you will need a significant amount of money set aside to qualify for a franchise. You will also need to keep making payments every month for franchise fees. One of the common contributing costs to those fees will be advertising expenses.

What can you do when the company doesn’t pay for advertisements in your area?

Review your franchise paperwork carefully

There is usually a specific breakdown of advertising requirements and expectations in franchise agreements. The franchisor company usually pays for advertising in most markets but may expect you to contribute to ads run in your area specifically.

Other times, they may give you the option of buying into advertising campaigns. What you need to know is how much, if any, advertising investment is mandatory and what obligations the franchisor company has to you.

What if they should run ads but don’t?

Brand awareness and clever campaigns do little to benefit you as a franchisee if the local population doesn’t know about the most recent sale or new products. When your franchise agreement includes specific advertising investment and you believe there has not been follow-through on that obligation, you may need to negotiate with the company or even take them to court.

Knowing your rights as someone investing in a franchise will help you protect yourself when the franchisor doesn’t uphold their obligations.