Marketing is usually pitched as one of the biggest strengths of a franchise system.

And often, that is true.

business.gov.au notes that when you buy a franchise, part of the value may include supply and advertising agreements as well as access to marketing materials such as website content and images. (business.gov.au)

But from a finance perspective, marketing is not only a benefit.

It is also a cost centre, a cash flow commitment, and sometimes a source of misunderstanding for new buyers.

When people talk about Australia franchise finance, they often focus on the franchise fee, fit-out and equipment. Yet ongoing marketing contributions can have a real impact on serviceability and business performance, especially in the early stages of trading.

Under the current franchising framework, marketing-related costs deserve careful review. The ACCC says the new Franchising Code of Conduct took effect on 1 April 2025, with some additional rules applying from 1 November 2025, including rules around specific purpose funds. It also says franchisors must provide certain information where franchisees contribute to specific purpose funds, such as a marketing fund, and that annual fund statements must be prepared within 4 months of financial year end and provided to contributing franchisees within 30 days after preparation. (ACCC)

That matters because buyers need to know what they are paying for.

The ACCC’s guidance also shows that some systems may require contributions to more than one specific purpose fund, such as a marketing fund and an IT fund. (ACCC)

So when a buyer says, “The marketing fee looks manageable,” the next question should be, “Is that the full picture?”

There may be national brand contributions, local area marketing expectations, launch campaign obligations, or store-level promotional spend that sits outside the standard royalty structure. Even if each amount looks modest on its own, together they affect cash flow.

This is where franchise lending and marketing intersect.

A lender wants confidence that the business can manage its fixed and variable commitments. If the buyer has not properly budgeted for marketing contributions and local promotion, the finance structure may look fine at approval and feel tight in practice once trading begins.

There is also a strategic angle here.

Strong marketing systems can support stronger franchises. A well-run brand with disciplined national campaigns, local execution support and clear fund governance may present as a more stable proposition overall. That does not guarantee approval, but it can support the broader case that the system is mature and commercially organised.

For buyers, the lesson is simple: do not treat marketing spend as an afterthought.

Ask how the fund works. Ask what local marketing is still expected from you. Ask whether launch campaigns are funded separately. Ask what reporting is available. Ask how these costs have changed over time.

Because good marketing may help drive revenue, but poorly understood marketing obligations can still put pressure on cash flow.

At Viewpoint Finance Group, we look at these ongoing franchise costs as part of the wider finance picture. That helps buyers understand not just whether they can obtain a franchise loan, but whether the business has a better chance of performing once it is up and running.