Glossary

Ad fund

Definition

An ad fund is money a franchise owner pays into the brand's shared advertising, usually a percent of sales. It is on top of the royalty and on top of any money spent on local ads.

What is an ad fund?

Many franchises ask every owner to pay into a brand ad fund. The money goes into one pot, and the brand uses it to market the brand as a whole. It is usually a percent of your sales.

An ad fund is not the same as your own local ads. Some franchises charge both. The 2026 Mr. Sandless franchise disclosure document lists a 1% ad fund and also requires at least $1,500 a month of local ad spend. Together with its $600 a month minimum royalty, that is at least $2,100 a month before the 1% ad fund. Those minimums apply in a busy month or a slow one.

On a job the size of the Mr. Sandless average, $2,399, the 6% royalty and the 1% ad fund together are about $168. These are examples, not promises.

FloorIt has no brand ad fund and no minimum monthly ad spend. Your first 50 leads come from Facebook and Instagram ads we run under your own brand, on us. After that, leads come bundled in when you reorder finish from us, and you can run your own ads with our ad library and training. How much you spend on ads is up to you.

When you compare programs, list every fee that comes due each month, including any ad fund, so you know what a slow month will cost.

Related terms

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FloorIt vs. Mr. Sandless: the franchise fee, total investment, royalty, ad fund and territory from the 2026 Mr. Sandless disclosure, next to how FloorIt works.

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