What is the condition for a Craters & Freighters franchisee to advertise outside their territory?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not advertise outside your Territory without our approval, which may be withheld in our sole discretion.
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, a franchisee needs approval from Craters & Freighters to advertise outside of their designated territory. This approval can be withheld at Craters & Freighters' sole discretion.
In addition to this requirement, Craters & Freighters franchisees must spend a minimum amount on advertising and promotion within their territory. This is defined as the greater of $6,000 or 1% of the franchisee's adjusted gross sales from the previous calendar year. However, this expense will not exceed $18,000. Franchisees are also required to submit annual reports to Craters & Freighters detailing their advertising expenditures.
These advertising expenses are separate from the mandatory contributions to the Marketing Fund, which are also 1% of monthly Adjusted Gross Sales. Craters & Freighters also reserves the right to mandate that franchisees pay their Individual Advertising Expense to an approved supplier. Any contributions to a Cooperative will count towards the franchisee's required Individual Advertising Expense.