Can Craters & Freighters loan money to the Marketing Fund?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
end Marketing Fund monies on Franchisee's behalf or benefit or to expend Marketing Fund monies equivalent or proportionate to Franchisee's contributions or Franchisee's benefit. Franchisor does not guarantee that advertising expenditures from the Marketing Fund will benefit Franchisee or any other franchisee directly, on a pro rata basis,
or at all. Franchisor does not derive revenue or any other material consideration as a result of Franchisee's Marketing Fund Contributions. Franchisor is not required to spend an amount from the Marketing Fund on local marketing or advertising in Franchisee's Territory. Franchisor does not spend any of funds collected by the Marketing Fund on directly soliciting new franchisees. Any unused funds in any calendar year will be applied to the following year's funds, and Franchisor reserves the right to contribute or loan additional funds to the Marketing Fund on any terms Franchisor deems reasonable.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, Craters & Freighters reserves the right to contribute or loan additional funds to the Marketing Fund. The terms of these loans are determined to be reasonable by Craters & Freighters. Any unused funds in any calendar year will be applied to the following year's funds.
This means that Craters & Freighters has the discretion to provide financial support to the Marketing Fund through loans, supplementing the contributions made by franchisees. This could be beneficial in situations where the Marketing Fund requires additional resources for specific campaigns or initiatives.
However, as a franchisee, it's important to note that the terms of these loans are determined solely by Craters & Freighters, and there is no guarantee that such loans will be provided or that they will directly benefit individual franchisees or territories. It is also important to note that Craters & Freighters does not derive revenue or any other material consideration as a result of Franchisee's Marketing Fund Contributions.