Where can I find more details about how Craters & Freighters administers the Marketing Fund?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
The Marketing Fund may also be used to meet any and all costs of maintaining, administering, directing, and preparing marketing, advertising, and promotional efforts and programs including, but not limited to: direct mail advertising; local, regional, and national promotions; call centers; market research; public relations activities; developing and maintaining Franchisor's Website and franchisee geosites (including the Franchisee Geosite); employing marketing, advertising, and public relations agencies (including the payment of commissions); purchasing promotional items; attending trade shows; providing other marketing materials and services to Craters & Freighters Franchised Businesses operating under the System; and other marketing, advertising, and promotional activities.
These costs may include the proportionate salary share of employees of Franchisor or any Affiliate of Franchisor who devote time and render services for marketing, advertising, or promotion, or the administration of the Marketing Fund; such costs may include administrative costs, salaries, and overhead expenses.
No part of the Marketing Fund will be used by Franchisor to defray any of Franchisor's general operating expenses, other than those reasonably allocable to the marketing, advertising, or promotional activities described in this Section or other activities reasonably related to the administration or direction of the Marketing Fund.
Franchisor, any Affiliate of Franchisor, and Franchisor's authorized representatives may be reimbursed from the Marketing Fund for administrative costs, independent audits, reasonable accounting, bookkeeping, reporting and legal expenses, taxes and all other reasonable direct or indirect expenses that Franchisor, any Affiliate of Franchisor, and Franchisor's authorized representatives may incur relating to programs funded by the Marketing Fund.
The Marketing Fund is intended to maximize the general brand recognition of the System, and Franchisor is not obligated to expend Marketing Fund monies on Franchisee's behalf or benefit or to expend Marketing Fund monies equivalent or proportionate to Franchisee's contributions or Franchisee's benefit.
Franchisor does not guarantee that advertising expenditures from the Marketing Fund will benefit Franchisee or any other franchisee directly, on a pro rata basis,
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters FDD, details regarding the administration of the Marketing Fund can be found in Item 22, which discusses contracts. Specifically, it outlines the types of costs that the Marketing Fund may cover, including expenses related to marketing, advertising, and promotional activities such as direct mail, promotions, call centers, market research, public relations, website maintenance, and the use of marketing agencies. It also covers the costs of promotional items, trade shows, and other marketing services provided to Craters & Freighters franchisees.
The FDD clarifies that the Marketing Fund can be used to cover a proportionate share of the salaries of Craters & Freighters employees or its affiliates who work on marketing, advertising, promotion, or the administration of the fund. This includes administrative costs, salaries, and overhead expenses. However, the FDD states that the Marketing Fund will not be used to cover Craters & Freighters' general operating expenses, except for those directly related to marketing and fund administration.
Furthermore, the FDD indicates that Craters & Freighters, its affiliates, and authorized representatives may be reimbursed from the Marketing Fund for administrative costs, audits, accounting, legal expenses, taxes, and other direct or indirect expenses related to programs funded by the Marketing Fund. It is important to note that Craters & Freighters does not guarantee that advertising expenditures from the Marketing Fund will directly benefit each franchisee on a pro rata basis, as the fund is intended to maximize the overall brand recognition of the Craters & Freighters system.