What 10 restaurant franchise FDDs say about ad funds and local marketing (2026)

Which documents did we read?

A franchise brand selling in the US generally must give buyers a franchise disclosure document, or FDD. The FTC’s Franchise Rule sets what goes in it. Two items matter for marketing. Item 6 lists the fees a franchisee pays after opening, including the ad fund. Item 11 explains the advertising program: who runs the fund, how much each store pays, local rules and co-ops.

The rule also makes Item 11 say how the fund was spent in the last fiscal year. It asks for the share on production, media placement and admin. That makes the FDD a rare public look at how chains split marketing money.

We pulled the latest 2026 FDD of ten restaurant brands from Minnesota’s public franchise database, CARDS. We picked brands with a 2026 clean filing there, across burgers, pizza, subs, wings, tacos, desserts and smoothies. We read Item 6, Item 7, Item 11 and the franchise agreement. Each filing is linked in the sources.

What do the ten documents say?

The figures are for a new, standard restaurant. Older agreements and non-traditional sites can differ.

“Estimated” means the figure comes from the Item 7 table of startup costs, not a stated minimum.

How much goes to the national fund?

Between 2% and 6% of sales. Seven of the ten charge 4% or more. Freddy’s FDD says its rate goes from 2.5% to 3.0% on October 8, 2026.

The money mostly buys media. Nine brands report a media line. Six of them spent more than 75% of the fund on media in 2025. Wingstop, Jimmy John’s and Freddy’s spent less, with more going to admin, technology, PR and creative. Taco John’s is the outlier: 99% of its fund went to producing ads.

These funds are large. Domino’s fund spent about $593 million in 2025. Papa John’s fund spent $199.9 million. None of the ten fund reports has a line for creators or influencers.

Who pays for local marketing?

Mostly the franchisee, and mostly by choice. Only Culver’s and Jimmy John’s set a fixed local minimum today. Culver’s asks for 1% of gross sales. Jimmy John’s asks for 0.5% of weekly gross sales, starting 120 days after opening.

Most others keep the right to require more. Crumbl and Freddy’s can ask for up to 2%. Wingstop’s local amount is now 0%. Papa John’s made local marketing voluntary through 2029. Tropical Smoothie Cafe expects 1% to 2% but does not require it.

Local co-ops are the other route. Jersey Mike’s co-ops can charge up to 2%. Culver’s could set up co-ops charging up to 4%, but has none yet. Freddy’s has none yet either.

The counting rules matter too. Jimmy John’s says it may decide which costs count toward the local minimum. Ask before a creator fee goes on that line.

Where does the opening money go?

Opening budgets are the clearest store-level marketing line. Five brands set a required minimum, from $2,500 to $15,000.

Two brands collect the money and spend it themselves. Jersey Mike’s takes $10,000 when the lease is signed. Tropical Smoothie Cafe takes a contribution of at least $10,000. In both cases, head office decides how it is used.

The others make the franchisee spend it within a window. Wingstop gives 3 months after opening. Freddy’s runs from 14 days before opening to 180 days after. Jimmy John’s does not require an event, but suggests holding one 90 to 120 days after opening.

What do the documents say about social media?

The word “influencer” does not appear in any of the ten documents as we read them. But eight of the ten bar a store’s own social pages or posts without written approval.

Wingstop is the strictest. Its FDD says franchisees “are strictly prohibited from creating social media pages for individual restaurants” without prior written consent. Jimmy John’s goes further on content. A franchisee may not “develop, maintain, or authorize” any user-generated content that mentions the restaurant unless the brand has had the chance to approve it. Freddy’s also names user-generated content.

The other two still keep control. Jersey Mike’s lets stores use only advertising it has approved. Domino’s says a store’s own ads, including social media, must be factual and on-brand, and must come down if it objects.

What should a chain marketing lead do with this?

• Find the budget line first. At most of these brands, store-level creator spend is the franchisee’s own money. Where a local minimum applies, agree up front whether creator fees count.
• Use the opening window. Opening budgets are often required and time-boxed. A creator visit fits the weeks after the doors open.
• Ask head office before the first post. Most of these agreements treat a store’s social posts as advertising. One approved brief and one label rule for every store saves a review per video.
• Read your own agreement. Rates and rules change by filing year, and older agreements can differ. Culver’s, for example, charges 2% to franchisees who signed before March 31, 2012.

For tools that help run creator programs, see our influencer marketing rankings. For restaurant marketing software, see the restaurant marketing rankings.

What are the limits of this data?

Ten brands are not a sample of the whole industry. We chose them because their 2026 filings were public in Minnesota. The fund figures describe 2025, so they trail today’s plans by about a year. The rates use different bases, so a percentage at one brand is not the same as at another. Terms shown are for new franchisees. This is a reading of public filings, not legal advice. The FDD and the signed franchise agreement decide.