How does Craters & Freighters administer the Marketing Fund?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
The Marketing Fund may also be used to meet any and all costs of maintaining, administering, directing, and preparing marketing, advertising, and promotional efforts and programs including, but not limited to: direct mail advertising; local, regional, and national promotions; call centers; market research; public relations activities; developing and maintaining Franchisor's Website and franchisee geosites (including the Franchisee Geosite); employing marketing, advertising, and public relations agencies (including the payment of commissions); purchasing promotional items; attending trade shows; providing other marketing materials and services to Craters & Freighters Franchised Businesses operating under the System; and other marketing, advertising, and promotional activities.
These costs may include the proportionate salary share of employees of Franchisor or any Affiliate of Franchisor who devote time and render services for marketing, advertising, or promotion, or the administration of the Marketing Fund; such costs may include administrative costs, salaries, and overhead expenses.
No part of the Marketing Fund will be used by Franchisor to defray any of Franchisor's general operating expenses, other than those reasonably allocable to the marketing, advertising, or promotional activities described in this Section or other activities reasonably related to the administration or direction of the Marketing Fund.
Franchisor, any Affiliate of Franchisor, and Franchisor's authorized representatives may be reimbursed from the Marketing Fund for administrative costs, independent audits, reasonable accounting, bookkeeping, reporting and legal expenses, taxes and all other reasonable direct or indirect expenses that Franchisor, any Affiliate of Franchisor, and Franchisor's authorized representatives may incur relating to programs funded by the Marketing Fund.
The Marketing Fund is intended to maximize the general brand recognition of the System, and Franchisor is not obligated to expend Marketing Fund monies on Franchisee's behalf or benefit or to expend Marketing Fund monies equivalent or proportionate to Franchisee's contributions or Franchisee's benefit.
Franchisor does not guarantee that advertising expenditures from the Marketing Fund will benefit Franchisee or any other franchisee directly, on a pro rata basis,
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 FDD, Craters & Freighters has broad discretion over the Marketing Fund. The Marketing Fund can cover a wide array of marketing, advertising, and promotional costs. These include direct mail, local and national promotions, call centers, market research, public relations, website maintenance, agency fees, promotional items, trade shows, and other marketing services for Craters & Freighters franchisees.
The costs covered by the Marketing Fund may also include a share of the salaries of Craters & Freighters employees or its affiliates if they are involved in marketing, advertising, promotion, or fund administration. The fund can also be used for administrative costs, salaries, and overhead expenses related to these activities. However, Craters & Freighters is not allowed to use the Marketing Fund to cover its general operating expenses, except for those directly related to marketing, advertising, promotion, or the administration of the fund itself.
Craters & Freighters, its affiliates, and authorized representatives can be reimbursed from the Marketing Fund for expenses like audits, accounting, bookkeeping, reporting, legal fees, taxes, and other direct or indirect costs related to the programs funded by the Marketing Fund. The FDD specifies that the goal of the Marketing Fund is to enhance brand recognition for the Craters & Freighters system as a whole. Craters & Freighters is not obligated to spend money from the fund specifically for the benefit of any individual franchisee or in proportion to their contributions. There is no guarantee that advertising expenditures from the Marketing Fund will directly benefit any franchisee on a pro rata basis.