Where in the Craters & Freighters FDD can I find details regarding Marketing Cooperatives?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.8 Marketing Cooperatives. Franchisor reserves the right to establish one or more marketing cooperatives (each a "Cooperative"). Specifically, Franchisor may designate any geographic area in which two (2) or more Craters & Freighters outlets are located as a region for establishing a Cooperative. If a Cooperative is established for a geographic area where the Franchised Business is located, Franchisee must become a member of the Cooperative and abide by the rules of the Cooperative. All amounts contributed by Franchisee to a Cooperative will count towards the Individual Advertising Expense. Franchisor reserves the right to form, change, or dissolve any such Cooperative at any time.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, details regarding marketing cooperatives can be found in Section 9.8. Craters & Freighters reserves the right to establish one or more marketing cooperatives. These cooperatives may be formed in geographic areas where at least two Craters & Freighters outlets are located.
If a marketing cooperative is established in the area where a franchisee's business is located, the franchisee is required to become a member and adhere to the cooperative's rules. Any amounts that the franchisee contributes to the cooperative will count towards their individual advertising expenses.
Craters & Freighters retains the right to form, change, or dissolve any marketing cooperative at any time. This means that the existence and rules of a cooperative can change, impacting how a franchisee conducts their marketing efforts and allocates their advertising budget.