factual

Who is responsible for managing the Marketing Fund for Crab N Spice?

Crab_N_Spice Franchise · 2024 FDD

Answer 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 will 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 sole discretion on how the funds are used and does not have a fiduciary duty regarding the fund. However, CNS Franchising will provide an unaudited annual financial statement of the Marketing Fund to franchisees upon request, within 120 days of the close of CNS Franchising's fiscal year.

In addition to the Marketing Fund, Crab N Spice may establish market advertising and promotional cooperative funds ("Market Cooperative") in any geographical areas. Franchisees may be required to participate in these Market Cooperatives. If the members of a Market Cooperative cannot agree on how to spend the Market Cooperative monies, CNS Franchising may assume the decision-making authority after 10 days' notice to the members.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.