What is the due date for the Individual Advertising Expense report for a Craters & Freighters franchise?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Individual Advertising Expense | Greater of (a) $6,000, or (b) one percent (1%) of your Adjusted Gross Sales for the prior calendar year. In either case, this amount will not exceed $18,000. | As incurred. | Each year, you must spend this amount on advertising and promotion of your Franchised Business in your Territory. You must submit annual reports to us reflecting advertising expenditures, which must be utilized only for marketing, promotions, and advertising of the Franchised Business. We reserve the right to require you to pay the amount of the Individual Advertising Expense to a designated or approved supplier of ours. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, the Individual Advertising Expense is due as incurred. Each year, franchisees must spend a specified amount on advertising and promotion of their Franchised Business within their territory. This amount is the greater of $6,000 or one percent of the franchisee's Adjusted Gross Sales for the prior calendar year, but will not exceed $18,000.
As part of this advertising expense, franchisees must submit annual reports to Craters & Freighters reflecting their advertising expenditures. These expenditures must be used only for marketing, promotions, and advertising of the Franchised Business. Craters & Freighters retains the right to require franchisees to pay the Individual Advertising Expense to a designated or approved supplier.
While the Individual Advertising Expense is due as incurred, the FDD does not specify the exact due date for the annual report reflecting advertising expenditures. A prospective franchisee should clarify with Craters & Freighters the specific date the annual advertising expense report is due to ensure compliance.