factual

Can the Craters & Freighters Marketing Fund be used for direct mail advertising?

Craters_Freighters Franchise · 2025 FDD

Answer from 2025 FDD Document

The Marketing Fund will be used exclusively for the purpose of promoting the System. We may expend Marketing Fund monies towards the creation, production, and/or placement of advertising in local, regional, or national media including, but not limited to, broadcast, print, electronic, direct mail, radio, television, or other media), developing promotional materials, and undertaking public relations activities on behalf of the entire System or on behalf of a particular portion of the System. 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 your 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 franchised businesses operating under the System; and other marketing, advertising, and promotional activities. These costs may include the proportionate salary share of employees of ours or any Affiliate of ours 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 us to defray any of our general operating expenses, other than those reasonably allocable to the marketing, advertising, or promotional activities described here or other activities reasonably related to the administration or direction of the Marketing Fund. We, any Affiliate of ours, and our 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 we, any Affiliate of ours, and our authorized representatives may incur relating to programs funded by the Marketing Fund.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 22–29)

What This Means (2025 FDD)

According to Craters & Freighters' 2025 Franchise Disclosure Document, the Marketing Fund can be used for direct mail advertising. The Marketing Fund is used to promote the Craters & Freighters system, and the franchisor may spend these funds on advertising in various media.

Specifically, the funds may be used for the creation, production, and placement of advertising in media such as broadcast, print, electronic, direct mail, radio, and television. The Marketing Fund can also cover the costs of maintaining and administering marketing and promotional efforts, including direct mail advertising, local, regional, and national promotions, call centers, market research, and public relations activities.

This means that Craters & Freighters franchisees benefit from a Marketing Fund that actively supports various advertising channels, including direct mail, to enhance brand recognition and drive business. However, the franchisor has the discretion on how the funds are spent and is not obligated to spend the money in proportion to franchisee contributions or in any specific territory.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.