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Can my local franchise advertise on my website without having to jump through hoops?

Asked over 2 years ago - Sarasota, FL

I plan on launching a website that advertises with coupons, products, etc. and before I approached my local franchise restaurant (i.e. Carrabba's, Outback, etc.) to sell ad space on the site, I was curious if that was something that each franchise handled or if it all needed to go through a main corporate location for approvals and such.

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Attorney answers (3)

Robert John Murillo

Reputation Level 15

Answered over 2 years ago. Business Attorney in Boulder, CO.

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What the franchisee can and cannot do regarding advertising is spelled out in the franchise agreement. Franchise terms vary in most respects to there is no way to say if they will have to jump through hoops or not unless you have the franchise agreement.

DISCLAIMER—This answer is for informational purposes only and discusses general legal principles, trends, and considerations and is not intended as specific legal advice regarding your question. This answer does not establish an attorney client relationship.

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Lynne D Shelton

Reputation Level 9

Answered over 2 years ago. Business Attorney in Cedar Park, TX.

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The Franchise Agreement that was signed by each franchisee will depict what they can or cannot due in regards to local advertising. This information can be found within the Franchise Disclosure Document, Item 11 as well. You can sometimes find this information posted on state registration sites or their corporate website.

An easier way to find out is just to ask the owner of each location.

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Debra Hill

Reputation Level 4

Answered over 2 years ago. Business Attorney in Jacksonville, FL.

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I would do both if you are launching nationally. If not, contact the local stores.

Regarding advertising requirments for franchisees, most franchise agreements (especially restaurants) either have a local advertising requirement or a regional cooperative requirement. Local ad requirements typically make the franchisee spend 1% - 3% of their gross receipts each month advertising locally. The franchisee will know the requirements (including how to get approval) so I wouldn't worry about it. BTW, most franchisor's require pre-approval of all ads and often have ads for their franchisees to use already prepared. If there is a co-op, then several franchisees in an area draw together their marketing money to place ads. Again, the local franchisees will know who to contact. I would make sure I am talking to the owner and not the general manager.

Regarding national advertising, most franchisor's have a marketing department so you would need to contact the marketing director. Franchise marketing departments will run national campaigns so if you can help them do this, contact them. If you are just looking for approval in your area, go to the local franchisees.

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