Specific-purpose fund
What it means
A specific-purpose fund is money collected from franchisees for a stated collective purpose. The best-known example is the marketing fund, but the Code's specific-purpose-fund rules apply more broadly to any fund with a defined use.
From 1 November 2025, the Code strengthened the obligations around these funds: franchisors must keep them separate, use the money only for the stated purpose, and provide annual financial statements to franchisees so contributions can be tracked.
In practice
As a franchisee, you are entitled to see how a specific-purpose fund is spent. Ask for the annual statement and check that contributions are being used for their stated purpose, not general franchisor overheads.
A real example
A café network collects a 2% marketing levy into a specific-purpose fund. Under the post-November-2025 rules, franchisees receive an annual statement showing the fund paid for national campaigns and produced no undisclosed benefit to the franchisor.
Specific-purpose fund, FAQs
What is the difference between a marketing fund and a specific-purpose fund?
A marketing fund is the most common type of specific-purpose fund. The Code's specific-purpose-fund rules cover marketing funds and any other fund collected for a defined collective purpose.
Do franchisors have to report on specific-purpose funds?
Yes. Under rules effective 1 November 2025, franchisors must administer the fund separately, spend it only on its stated purpose, and give franchisees an annual financial statement.
See the full franchise glossary, the Fee Index or our buyer guides.