factual

What is the deadline for a Craters & Freighters franchisee to pay the Marketing Fund Contribution?

Craters_Freighters Franchise · 2025 FDD

Answer from 2025 FDD Document

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. You must pay the Marketing Fund Contribution to us at the same time that you

pay your monthly Royalty Fee.

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 Franchise Disclosure Document, franchisees must contribute to the Marketing Fund. This contribution is equal to one percent (1%) of monthly Adjusted Gross Sales. However, Craters & Freighters retains the right to increase this amount up to two percent (2%) of monthly Adjusted Gross Sales, provided they give the franchisee 30 days written notice.

The deadline for paying the Marketing Fund Contribution is the same time that the franchisee pays their monthly Royalty Fee. It is important for prospective franchisees to understand this obligation, as it impacts their monthly expenses and overall profitability.

Missing from the provided FDD excerpts is the specific date the monthly Royalty Fee is due. A prospective franchisee should clarify with Craters & Freighters the exact date the monthly Royalty Fee and Marketing Fund Contribution are due to properly manage their cash flow.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.