If a Craters & Freighters franchisee contributes to a local advertising cooperative, to what expense is that contribution credited?
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 Craters & Freighters' 2025 Franchise Disclosure Document, if a local advertising cooperative is formed in a franchisee's territory, any contributions the franchisee makes to the cooperative will be credited to their Individual Advertising Expense.
The amount a Craters & Freighters franchisee contributes to the cooperative is a proportional share to be determined, but it will not exceed 1% of the franchisee's Adjusted Gross Sales. This contribution is payable as incurred.
The Individual Advertising Expense is the greater of $6,000 or 1% of the franchisee's Adjusted Gross Sales for the prior calendar year, but will not exceed $18,000. This amount must be spent each year on advertising and promotion of the franchised business in the franchisee's territory. Franchisees must submit annual reports to Craters & Freighters reflecting advertising expenditures, which must be utilized only for marketing, promotions, and advertising of the Franchised Business. Craters & Freighters reserves the right to require franchisees to pay the amount of the Individual Advertising Expense to a designated or approved supplier.