How often is the Craters & Freighters Marketing Fund Contribution payable?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.4 Marketing Fund Contribution. Franchisee must pay to Franchisor a contribution to the Marketing Fund ("Marketing Fund Contribution") equal to one percent (1%) of the Adjusted Gross Sales generated by the Franchised Business during the previous month, payable monthly at
the same time and in the same manner as the monthly Royalty Fee. Franchisor reserves the right to increase the Marketing Fund Contribution up to two percent (2%) of the Adjusted Gross Sales generated by the Franchised Business, so long as Franchisor provides Franchisee with thirty (30) days' notice of such increase.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, franchisees are required to make Marketing Fund Contributions monthly. The contribution is equal to one percent (1%) of the Adjusted Gross Sales generated by the Franchised Business during the previous month. This payment is due at the same time and in the same manner as the monthly Royalty Fee.
Craters & Freighters retains the right to increase the Marketing Fund Contribution up to a maximum of two percent (2%) of Adjusted Gross Sales. However, Craters & Freighters must provide the franchisee with thirty (30) days' notice before implementing such an increase.
This contribution is used to maximize brand recognition for the Craters & Freighters system. However, the FDD stipulates that Craters & Freighters is not obligated to spend Marketing Fund monies on any franchisee's behalf or to expend monies equivalent or proportionate to a franchisee's contributions or benefit. Franchisees should be aware that contributions to the Marketing Fund do not guarantee direct benefits or a pro rata return on their investment.