What is the condition for Craters & Freighters to increase the Marketing Fund Contribution?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
We have established and will maintain and administer a national marketing fund ("Marketing Fund") for advertising and marketing programs. You must pay us a Marketing Fund contribution ("Marketing Fund Contribution") equal to one percent (1%) of monthly Adjusted Gross Sales. We have the right to increase the amount of your Marketing Fund Contribution up to two percent (2%) of monthly Adjusted Gross Sales upon 30 days written notice to you.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 22–29)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters FDD, Craters & Freighters has the right to increase the Marketing Fund Contribution. Currently, franchisees must pay a Marketing Fund Contribution equal to one percent (1%) of monthly Adjusted Gross Sales. Craters & Freighters can increase this amount up to two percent (2%) of monthly Adjusted Gross Sales.
To do so, Craters & Freighters must provide franchisees with 30 days written notice. This means that a franchisee's contribution to the marketing fund could potentially double, impacting their monthly expenses and profitability.
Franchisees should be aware of this potential increase and factor it into their financial projections. It is important to note that the FDD does not specify any particular criteria or conditions that would trigger this increase, leaving the decision at the discretion of Craters & Freighters with the only requirement being a 30-day written notice.