To whom does a Craters & Freighters franchisee pay the Cooperative Advertising fee?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Cooperative Advertising | Proportional share to be determined, but not to exceed 1% of Adjusted Gross Sales. | As incurred. | Payable only if a local advertising cooperative ("Cooperative") is formed in your Territory. Any contributions you make to the Cooperative will be credited to your Individual Advertising Expense (as described in Item 11). |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, the Cooperative Advertising fee is paid to the local advertising cooperative, if one is formed in the franchisee's territory. This fee is only payable if such a cooperative exists.
The amount of the Cooperative Advertising fee is a proportional share, which will be determined but will not exceed 1% of the franchisee's Adjusted Gross Sales. This fee is due as incurred.
Any contributions that a Craters & Freighters franchisee makes to the Cooperative will be credited to their Individual Advertising Expense, as described in Item 11 of the Franchise Disclosure Document. This means that money spent on the cooperative can offset required individual advertising expenditures.