What is the Craters & Freighters franchisee's required contribution to the Marketing Fund?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
um Performance Standards, Franchisor will have the right to reduce the size of, or otherwise modify, Franchisee's Territory upon providing 30 days' written notice to Franchisee.
- 3.4 Marketing Fund Contribution. Franchisee must pay to Franchisor a contribution to the Marketing Fund ("Marketing Fund Contribution") equal to one percent (1%) of the Adjusted Gross Sales generated by the Franchised Business during the previous month, payable monthly at
the same time and in the same manner as the monthly Royalty Fee.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, franchisees are required to contribute to the Marketing Fund. This contribution, referred to as the "Marketing Fund Contribution," is equivalent to one percent (1%) of the Adjusted Gross Sales generated by the franchised business during the previous month. This payment is due monthly, coinciding with the payment of the monthly Royalty Fee.
Craters & Freighters retains the right to increase this contribution up to a maximum of two percent (2%) of the Adjusted Gross Sales. However, they must provide the franchisee with thirty (30) days' notice before implementing such an increase.
This Marketing Fund is used for various marketing, advertising, and promotional activities to enhance the general brand recognition of the Craters & Freighters system. While the fund aims to benefit the entire system, Craters & Freighters does not guarantee that advertising expenditures from the Marketing Fund will directly benefit each franchisee on a pro rata basis or at all.