Who administers the Marketing Fund for Craters & Freighters?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
The Marketing Fund will be administered by us and we may use a professional advertising agency or media buyer to assist us in doing so.
The Marketing Fund is intended to maximize the general brand recognition of the System, and we are not obligated to expend Marketing Fund monies on your behalf or benefit or to expend Marketing Fund monies equivalent or proportionate to your contributions on your behalf or benefit. We do not guarantee that advertising expenditures from the Marketing Fund will benefit you or any other franchisee directly, on a pro rata basis, or at all. We do not derive revenue or any other material consideration as a result of your contributions to the Marketing Fund.
Any unused funds in any calendar year will be applied to the following year's funds, and we reserve the right to contribute or loan additional funds to the Marketing Fund on any terms we deem reasonable. Since the Marketing Fund is not audited, audited financial statements are not available to franchisees. Upon request, we will make available to you an annual accounting for the Marketing Fund that shows how the Marketing Fund proceeds have been spent for the previous year.
During our last fiscal year ending December 31, 2024, expenditures from the Marketing Fund were as follows: 2.6% on production, 81.5% on media placement, 3.5% on administrative expenses, and 12.4% on other expenditures relating to network sales and support, network software and hosting expenses, and network telephone supporting services.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 22–29)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the Marketing Fund is administered by Craters & Freighters. Craters & Freighters may also use a professional advertising agency or media buyer to assist them in administering the fund.
The Marketing Fund is intended to increase general brand recognition for the Craters & Freighters system. Craters & Freighters is not obligated to spend the monies in the fund on behalf of any particular franchisee or in proportion to their contributions. There is no guarantee that advertising expenditures from the Marketing Fund will benefit any franchisee directly or at all. Craters & Freighters does not receive revenue or any other material consideration as a result of franchisee contributions to the Marketing Fund.
Any unused funds in a calendar year will be applied to the following year's funds, and Craters & Freighters reserves the right to contribute or loan additional funds to the Marketing Fund on any terms they deem reasonable. The Marketing Fund is not audited; however, Craters & Freighters will make available to franchisees an annual accounting for the Marketing Fund that shows how the funds have been spent for the previous year upon request. During the last fiscal year ending December 31, 2024, expenditures from the Marketing Fund were allocated as follows: 2.6% on production, 81.5% on media placement, 3.5% on administrative expenses, and 12.4% on other expenditures relating to network sales and support, network software and hosting expenses, and network telephone supporting services.