LEGAL: When Should You Start Your Brand Fund? TODAY!
As the old saying goes, ‘The best time to plant a tree was 20 years ago. The second best time is now.’ Many emerging and startup franchisors hold off on collecting their brand fund fees because they don’t have a plan for the money, and they are still getting used to being franchisors. Brands that put off collecting it when they start, struggle with the implementation of the brand fund on franchisees who have been in the system for years and have grown accustomed to not paying into the fund. It can become a very difficult and politically sensitive issue to start charging after years of never charging. By Tom Spadea