When is the Individual Advertising Expense due for a Craters & Freighters franchise?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Individual Advertising Expense | Greater of (a) $6,000, or (b) one percent (1%) of your Adjusted Gross Sales for the prior calendar year. In either case, this amount will not exceed $18,000. | As incurred. | Each year, you must spend this amount on advertising and promotion of your Franchised Business in your Territory. You must submit annual reports to us reflecting advertising expenditures, which must be utilized only for marketing, promotions, and advertising of the Franchised Business. We reserve the right to require you to pay the amount of the Individual Advertising Expense to a designated or approved supplier of ours. |
| Technology Fee | Currently $500 per month. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Craters & Freighters's 2025 Franchise Disclosure Document, the Individual Advertising Expense is due as incurred. This means that the expense is payable as the franchisee spends money on advertising and promotion throughout the year.
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. Craters & Freighters requires franchisees to spend this amount annually on advertising and promoting their franchised business within their territory.
Franchisees must submit annual reports to Craters & Freighters that reflect their advertising expenditures, which must be used only for marketing, promotions, and advertising of the Franchised Business. Craters & Freighters retains the right to require franchisees to pay the Individual Advertising Expense to a designated or approved supplier.