What is the minimum Individual Advertising Expense a Craters & Freighters franchisee must spend each year?
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' 2025 Franchise Disclosure Document, franchisees are required to spend a minimum amount each year 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 for marketing, promotions, and advertising of the Craters & Freighters franchised business within the franchisee's territory. Franchisees are required to submit annual reports to Craters & Freighters reflecting these advertising expenditures.
Craters & Freighters retains the right to require franchisees to pay the individual advertising expense amount to a designated or approved supplier of the franchisor. This provides Craters & Freighters with control over how advertising funds are spent, potentially ensuring brand consistency and leveraging bulk purchasing power. Franchisees should inquire about approved advertising vendors to understand any limitations or requirements.