Does Craters & Freighters provide other benefits to any public figure for endorsing the franchise in advertisements?
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 18 — PUBLIC FIGURES (FDD page 44)
What This Means (2025 FDD)
Based on the 2025 FDD, Craters & Freighters uses a marketing fund to promote the system. The document states that the franchisor may use a professional advertising agency or media buyer. The marketing fund can be used for advertising in various media, promotional materials, and public relations activities. The franchisor may use the marketing fund to cover costs of marketing, advertising, and promotional efforts, including the proportionate salary share of employees involved in these activities.
The FDD specifies that the marketing fund will not be used to defray general operating expenses, except those related to marketing, advertising, or promotion. The franchisor, its affiliates, and authorized representatives may be reimbursed from the fund for administrative costs, audits, accounting, legal expenses, taxes, and other expenses related to programs funded by the marketing fund.
The FDD does not explicitly state whether Craters & Freighters provides other benefits to any public figure for endorsing the franchise in advertisements. A prospective franchisee should ask the franchisor directly about this.