factual

Can the Craters & Freighters Marketing Fund be used for regional 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.

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 regional advertising. Craters & Freighters has established a Marketing Fund to promote the Craters & Freighters system. The funds can be used for advertising in local, regional, or national media, including broadcast, print, electronic, direct mail, radio, television, or other media. It can also be used for developing promotional materials and public relations activities.

The Marketing Fund is intended to maximize brand recognition, but Craters & Freighters is not obligated to spend the money in proportion to a franchisee's contributions or guarantee any direct benefit to individual franchisees. Craters & Freighters does not have any local or regional advertising cooperatives unless they designate a geographic area where two or more Craters & Freighters outlets are located as a region for establishing a Cooperative. If a Cooperative has been established for a geographic area where your Craters & Freighters Franchised Business is located when the Franchise Agreement is signed, or if any Cooperative is established during the term of the Franchise Agreement, you must become a member of the Cooperative and abide by the rules of the Cooperative.

Franchisees are also required to spend a minimum amount on local advertising. Each year, a franchisee must spend the greater of $6,000, or one percent (1%) of their Adjusted Gross Sales for the prior calendar year, on advertising and promotion in their territory. This amount will not exceed $18,000. This expense is separate from the Marketing Fund contribution. Franchisees must submit annual reports to Craters & Freighters reflecting their advertising expenditures. Franchisees may not advertise outside their Territory without Craters & Freighters' approval.

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.