The franchise marketing fund explained
The marketing levy is a fee you pay for years, yet few buyers ask how it is spent. Here is what it funds and what you are entitled to see.
What is a franchise marketing fund?
What the levy pays for
- National or regional brand advertising and campaigns.
- Marketing collateral, creative and the digital systems behind them.
- Sometimes market research and brand development.
It generally does not cover your own local-area marketing, which many systems require you to fund separately. Confirm what is and is not included before you sign.
Your rights over the fund
The Code gives franchisees real protections here. The franchisor must administer the fund separately from its own money, use it for the purposes set out in the agreement, and provide an annual statement of receipts and expenditure. You are entitled to see where your levy goes, so ask for the most recent statement during due diligence.
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Frequently asked questions
What is a franchise marketing levy?
An ongoing fee, usually a percentage of gross sales, that franchisees pay into a shared marketing or brand fund for network-wide advertising and campaigns. It is separate from the royalty and from your own local marketing.
How is a franchise marketing fund regulated in Australia?
Under the Franchising Code 2025 the franchisor must keep the fund in a separate account, spend it on legitimate marketing set out in the agreement, and give franchisees an annual financial statement of receipts and expenditure.
Can I see how the marketing fund is spent?
Yes. The Code entitles franchisees to an annual statement of the fund's receipts and expenditure. Ask for the most recent one during due diligence, transparency here is a good sign.
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