Can the Craters & Freighters Marketing Fund be used for national advertising?
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 the 2025 Craters & Freighters Franchise Disclosure Document, the Marketing Fund can be used for national advertising. Craters & Freighters states that the Marketing Fund will be used to promote the System, and the franchisor may expend monies towards advertising in local, regional, or national media. This includes broadcast, print, electronic, direct mail, radio, television, or other media.
This means that a portion of the funds that Craters & Freighters franchisees contribute to the Marketing Fund could be used for advertising campaigns that reach a broad, national audience. These funds can also be used for developing promotional materials and public relations activities on behalf of the entire Craters & Freighters system. The franchisor has the discretion to use the Marketing Fund for various activities, including direct mail advertising, local, regional, and national promotions, call centers, market research, and maintaining the franchisor's website.
It is important to note that Craters & Freighters is not obligated to spend Marketing Fund monies in proportion to a franchisee's contributions or to guarantee any direct benefit to a franchisee. The FDD also states that the Marketing Fund is intended to maximize general brand recognition. For the fiscal year ending December 31, 2024, 81.5% of the Marketing Fund expenditures were used on media placement.