ad-fund-agreement
Advertising Fund Contribution Agreement
Drafts a franchise advertising fund agreement or addendum establishing contribution obligations, fund administration, and transparency provisions that minimize disputes.
Prerequisites
- Franchise Agreement — executed copy with date, amendment numbers, notice clauses, defined terms (especially "Gross Sales")
- Fund structure — standalone vs. addendum; national vs. regional; separate account vs. accounting mechanism
- Contribution rate — percentage of Gross Sales, payment frequency, remittance method (typically EFT aligned with royalty schedule)
- State franchise law — jurisdiction-specific disclosure obligations, separate-account mandates, reporting requirements
- FDD language — current Item 6 and Item 7 advertising fund disclosures for consistency
Document Sections
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