What geographic area may Craters & Freighters designate for establishing a Cooperative?
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 Craters & Freighters's 2025 Franchise Disclosure Document, Craters & Freighters may designate any geographic area where two or more of its outlets are located as a region for establishing a marketing cooperative. If a cooperative is established in an area where a franchisee's business is located, the franchisee must become a member and adhere to the cooperative's rules.
This means that if a prospective Craters & Freighters franchisee opens a location in an area with existing Craters & Freighters franchises, they may be required to participate in a marketing cooperative. This participation is mandatory if a cooperative is established for their area. The franchisee will need to factor in the cooperative's rules and any associated costs when planning their business operations and marketing strategies.
It's important to note that all amounts contributed by the franchisee to the Cooperative will count towards the Individual Advertising Expense. Craters & Freighters also retains the right to form, change, or dissolve any such Cooperative at any time, which could impact a franchisee's marketing obligations and strategies.