Do Affiliate-owned Craters & Freighters businesses contribute to the Marketing Fund?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
pay your monthly Royalty Fee. Company-owned or Affiliate-owned Craters & Freighters Franchised Businesses must contribute to the Marketing Fund at the same percentage rate as franchisees. 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 will be used exclusively for the purpose of promoting the System. We may expend Marketing Fund monies towards the creation, production, and/or placement of advertising in local, regional, or national media including, but not limited to, broadcast, print, electronic, direct mail, radio, television, or other media), developing promotional materials, and undertaking public relations activities on behalf of the entire System or on behalf of a particular portion of the System. 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 your 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 franchised businesses operating under the System; and other marketing, advertising, and promotional activities. These costs may include the proportionate salary share of employees of ours or any Affiliate of ours 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 us to defray any of our general operating expenses, other than those reasonably allocable to the marketing, advertising, or promotional activities described here or other activities reasonably related to the administration or direction of the Marketing Fund. We, any Affiliate of ours, and our 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 we, any Affiliate of ours, and our authorized representatives may incur relating to programs funded by the Marketing Fund.
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, Affiliate-owned Craters & Freighters Franchised Businesses are required to contribute to the Marketing Fund. These businesses must contribute at the same percentage rate as franchisees.
The Marketing Fund is administered by Craters & Freighters, who may use a professional advertising agency or media buyer to assist in its administration. The funds are used exclusively to promote the Craters & Freighters system through various advertising and promotional activities.
These activities can include advertising in local, regional, or national media (broadcast, print, electronic, direct mail, radio, television, etc.), developing promotional materials, and undertaking public relations activities. The fund may also cover the costs of maintaining marketing efforts, including website maintenance, call centers, market research, and employing marketing agencies. The costs can also include a proportionate salary share of employees or affiliates involved in marketing and administrative expenses related to the Marketing Fund.
It is important to note that the Marketing Fund will not be used to cover Craters & Freighters' general operating expenses, except for those reasonably related to marketing and promotional activities. Craters & Freighters, its affiliates, and authorized representatives may be reimbursed from the Marketing Fund for administrative costs, audits, accounting, legal expenses, taxes, and other reasonable expenses related to programs funded by the Marketing Fund.