The franchising model Panera used r

The franchising model Panera used required the franchisee to pay 0.7% of total sales to a national advertising fund and 0.4 % of total sales as a marketing administration fee. Franchisees were also required to spend 2.0 % of total sales on advertising in local markets. Panera contributed similar amounts of capital from the company owned stores. Requiring the franchise owned cafés to pay a significant portion of marketing costs allowed Panera Bread to lower the company’s capital contribution.