Can the Craters & Freighters Marketing Fund be used for market research?
Craters_Freighters Franchise · 2025 FDDAnswer 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.
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 market research. The document specifies that the Marketing Fund is intended to promote the Craters & Freighters system, and the franchisor has the discretion to allocate the funds for various marketing, advertising, and promotional activities.
Specifically, the FDD states that the Marketing Fund may be used to meet the costs of preparing marketing efforts and programs including market research. This indicates that Craters & Freighters franchisees benefit from the franchisor's ability to use the Marketing Fund for market research, which can inform advertising and promotional strategies.
It is important to note that Craters & Freighters is not obligated to spend Marketing Fund monies on behalf of any specific franchisee, nor are they required to spend amounts equivalent or proportionate to a franchisee's contributions. The franchisor also does not guarantee that advertising expenditures from the Marketing Fund will benefit any franchisee directly or on a pro rata basis. Franchisees should be aware that the Marketing Fund is not audited, though an annual accounting of how the funds were spent in the previous year will be made available upon request.