Who manages the Marketing Fund for Crab N Spice?
Crab_N_Spice Franchise · 2024 FDDAnswer from 2024 FDD Document
- (d) Marketing. CNS Franchising shall manage the Marketing Fund.
Source: Item 22 — CONTRACTS (FDD pages 50–51)
What This Means (2024 FDD)
According to Crab N Spice's 2024 Franchise Disclosure Document, CNS Franchising manages the Marketing Fund. Specifically, the FDD states that CNS Franchising shall manage the Marketing Fund.
This means that Crab N Spice franchisees do not have direct control over how the Marketing Fund is spent. CNS Franchising has the authority to make decisions regarding the use of these funds. However, CNS Franchising will prepare an unaudited annual financial statement of the Marketing Fund within 120 days of the close of CNS Franchising's fiscal year and will provide the financial statement to Franchisee upon request.
In addition to the Marketing Fund, CNS Franchising may establish market advertising and promotional cooperative funds ("Market Cooperative") in any geographical areas. Franchisees may be required to participate in these Market Cooperatives, and CNS Franchising determines the governance and can require bylaws for these cooperatives. If the members of a Market Cooperative are unable or fail to determine the manner in which Market Cooperative monies will be spent, CNS Franchising may assume this decision-making authority after 10 days' notice to the members of the Market Cooperative.