What is the minimum amount a Craters & Freighters franchisee must spend annually on Individual Advertising Expense?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Individual Advertising Expense | Greater of (a) $6,000, or (b) one percent (1%) of your Adjusted Gross Sales for the prior calendar year. In either case, this amount will not exceed $18,000. | As incurred. | Each year, you must spend this amount on advertising and promotion of your Franchised Business in your Territory. You must submit annual reports to us reflecting advertising expenditures, which must be utilized only for marketing, promotions, and advertising of the Franchised Business. We reserve the right to require you to pay the amount of the Individual Advertising Expense to a designated or approved supplier of ours. |
| Technology Fee | Currently $500 per month. We reserve the right to increase this amount upon 30 days written notice to you. However, this amount will not exceed $750 per month. | Same as Royalty Fee. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Craters & Freighters's 2025 Franchise Disclosure Document, franchisees are required to spend a minimum amount annually on individual advertising. This expense is the greater of $6,000 or one percent of the franchisee's adjusted gross sales from the prior calendar year. However, the annual individual advertising expense will not exceed $18,000.
This advertising expense must be used each year for marketing, promotions, and advertising related to the Craters & Freighters franchised business within the franchisee's territory. Franchisees are required to submit annual reports to Craters & Freighters reflecting these advertising expenditures, ensuring that the funds are used appropriately for business promotion.
Craters & Freighters retains the right to mandate that franchisees pay the individual advertising expense to a designated or approved supplier. This provision allows Craters & Freighters to have greater control over how advertising funds are spent, potentially ensuring brand consistency and effective marketing strategies across all franchise locations.