As a franchisee, do I have to contribute towards marketing/advertising the brand?

Most franchise schemes provide for expenditure on advertising and promotion by either or both franchisor and franchisee. Where the franchisor undertakes the obligation to advertise and promote, there are three alternative methods of approach when dealing with the cost:  1. The franchisor makes a charge to the franchisee of a sum calculated as a percentage of the franchisee’s gross income. The sums received by the franchisor from the franchisees are spent by the franchisor on advertising and promotion.  2. The franchisor includes the advertising and promotional expense within the continuing franchisee fee and undertakes to spend not less than a minimum percentage of such fees on advertising and promotion.  3. The franchisor undertakes to conduct advertising and promotional activities to the extent that it thinks fit, without collecting a contribution or allocating a fixed sum for the purpose.  Apart from these approaches, there are franchise operations in which it is considered better to concentrate on local or regional advertising and promotion rather than on a national basis. In such cases, the franchisor will probably require franchisees to spend a fixed percentage of gross income each year for this purpose..