When is the Marketing Fund Contribution paid by a Crab N Spice franchisee?
Crab_N_Spice Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee shall spend at least 2% of Gross Sales each month on marketing the Business.
The majority vote of the Market Cooperative will determine the dues to be paid by members of the Market Cooperative, including Franchisee, but not less than 1% of Gross Sales.
Source: Item 22 — CONTRACTS (FDD pages 50–51)
What This Means (2024 FDD)
According to Crab N Spice's 2024 Franchise Disclosure Document, the timing of payments to the Marketing Fund is not explicitly detailed. However, the document does state that franchisees are required to spend at least 2% of gross sales each month on local marketing for their Crab N Spice business.
Additionally, if a Market Cooperative is established in the franchisee's area, the franchisee will be required to become a member. The dues to be paid to the Market Cooperative will be determined by a majority vote of the members, but cannot be less than 1% of gross sales.
Since the FDD does not specify when the Marketing Fund contribution is to be paid, prospective franchisees should seek clarification from Crab N Spice regarding the payment schedule for both the general Marketing Fund and any potential Market Cooperative dues. Understanding the timing of these payments is crucial for managing cash flow and budgeting effectively.