Advertising Fund Contribution Agreement

Drafts a franchise advertising fund agreement or addendum establishing contribution obligations, fund administration, and transparency provisions that minimize disputes.

Prerequisites

1. Franchise Agreement — executed copy with date, amendment numbers, notice clauses, defined terms (especially "Gross Sales")
2. Fund structure — standalone vs. addendum; national vs. regional; separate account vs. accounting mechanism
3. Contribution rate — percentage of Gross Sales, payment frequency, remittance method (typically EFT aligned with royalty schedule)
4. State franchise law — jurisdiction-specific disclosure obligations, separate-account mandates, reporting requirements
5. FDD language — current Item 6 and Item 7 advertising fund disclosures for consistency

Document Sections