What is the 'Marketing Fund' for Craters & Freighters franchises used for?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
The Marketing Fund may also be used to meet any and all costs of maintaining, administering, directing, and preparing marketing, advertising, and promotional efforts and programs including, but not limited to: direct mail advertising; local, regional, and national promotions; call centers; market research; public relations activities; developing and maintaining Franchisor's Website and franchisee geosites (including the Franchisee Geosite); employing marketing, advertising, and public relations agencies (including the payment of commissions); purchasing promotional items; attending trade shows; providing other marketing materials and services to Craters & Freighters Franchised Businesses operating under the System; and other marketing, advertising, and promotional activities.
These costs may include the proportionate salary share of employees of Franchisor or any Affiliate of Franchisor who devote time and render services for marketing, advertising, or promotion, or the administration of the Marketing Fund; such costs may include administrative costs, salaries, and overhead expenses.
No part of the Marketing Fund will be used by Franchisor to defray any of Franchisor's general operating expenses, other than those reasonably allocable to the marketing, advertising, or promotional activities described in this Section or other activities reasonably related to the administration or direction of the Marketing Fund.
Franchisor, any Affiliate of Franchisor, and Franchisor's authorized representatives may be reimbursed from the Marketing Fund for administrative costs, independent audits, reasonable accounting, bookkeeping, reporting and legal expenses, taxes and all other reasonable direct or indirect expenses that Franchisor, any Affiliate of Franchisor, and Franchisor's authorized representatives may incur relating to programs funded by the Marketing Fund.
The Marketing Fund is intended to maximize the general brand recognition of the System, and Franchisor is not obligated to expend 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,
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, the Marketing Fund is used for various marketing, advertising, and promotional efforts. These efforts include direct mail advertising, local, regional, and national promotions, call centers, market research, and public relations activities. The fund also covers the costs of developing and maintaining the Craters & Freighters website and franchisee geosites, employing marketing and advertising agencies, purchasing promotional items, attending trade shows, and providing marketing materials and services to franchisees.
These costs may also include a proportionate share of the salaries of Craters & Freighters employees or its affiliates who work on marketing, advertising, or promotion, as well as the administrative costs, salaries, and overhead expenses associated with these activities. The Marketing Fund will not be used to cover Craters & Freighters' general operating expenses, except for those directly related to marketing, advertising, promotion, or the administration of the fund.
Craters & Freighters, its affiliates, and authorized representatives may be reimbursed from the Marketing Fund for administrative costs, independent audits, accounting, bookkeeping, reporting, legal expenses, taxes, and other direct or indirect expenses related to programs funded by the Marketing Fund. The goal of the Marketing Fund is to maximize brand recognition for the Craters & Freighters system. However, Craters & Freighters is not obligated to spend the funds on behalf of any specific franchisee or in proportion to their contributions, and there is no guarantee that advertising expenditures will directly benefit any franchisee.
Craters & Freighters also reserves the right to use Marketing Fund monies for call centers that may be operated by Craters & Freighters, an affiliate, or a third party. Additionally, Craters & Freighters may establish marketing cooperatives in geographic areas with multiple Craters & Freighters outlets, and franchisees may be required to participate in these cooperatives.