Can the Craters & Freighters Marketing Fund be used for public relations activities?
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. 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 the 2025 Craters & Freighters Franchise Disclosure Document, the Marketing Fund can be used for public relations activities. Craters & Freighters will administer the fund and may use a professional advertising agency or media buyer to assist them. The fund's purpose is to promote the Craters & Freighters system.
Specifically, the Marketing Fund may be used for creating and placing advertising in various media (broadcast, print, electronic, direct mail, radio, television, etc.), developing promotional materials, and undertaking public relations activities for the entire Craters & Freighters system or a portion of it. The fund can also cover costs related to maintaining and directing marketing efforts, including direct mail, promotions, call centers, market research, and the Craters & Freighters website.
Furthermore, the Marketing Fund can be used to pay for marketing, advertising, and public relations agencies, purchase promotional items, attend trade shows, and provide marketing materials to franchisees. The fund can also cover a proportionate share of employee salaries and administrative costs related to marketing and promotion. However, the fund cannot be used for Craters & Freighters' general operating expenses, except those related to marketing and administration of the Marketing Fund itself. Craters & Freighters, its affiliates, and representatives can be reimbursed from the Marketing Fund for administrative costs, audits, accounting, legal expenses, and other expenses related to programs funded by the Marketing Fund.