A Reminder for franchisors that the rules around these funds now also apply to any “specific purpose fund” which include contributions sought by a franchisor from franchisees towards not only marketing but towards technology, refurbishment, training, group or specific projects, and sustainability or environmental funds.
From 1 November 2025, these funds must now comply with accounts and record keeping obligations, provision of annual financial statements, and proper disclosure in disclosure statements ensuring only reasonable costs are charged.
If you do not comply with the above there are substantial fines and penalties that may be imposed, so franchisors should ensure they comply with the new rules.
For support advice and or assistance around the new rules contact SL Franchise Team