Does Craters & Freighters reimburse for expenditures made by the franchisee to promote a modified trademark?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
hiring, wages and other compensation (including benefits), training, supervision and termination of Franchisee's employees and all other employment and employee related matters.
- 5.16 Modification of System. Franchisor will keep Franchisee informed regarding any changes in the System. Franchisor reserves the right to periodically change, improve, or further develop the System, or any part of the System, including but not limited to the Marks. Franchisee must promptly accept and comply with any change to the System and incur any expenditures as necessary to comply with the System; provided, however, such expenditures will not exceed an aggregate amount of Ten Thousand Dollars ($10,000) during the term of this Agreement. Franchise acknowledges that such expenditures are not limited or capped by Franchisor in any way.
6. OBLIGATIONS OF FRANCHISEE.
- 6.1 Personal Guaranty. Each of the owners of Franchisee must execute the Owner's Guaranty and Assumption of Obligations set forth in Attachment E to this Agreement, pursuant to which all obligations and duties of Franchisee are guaranteed by such individuals.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, Craters & Freighters reserves the right to periodically change the Marks and franchisees must promptly accept and comply with any change to the System and incur any expenditures as necessary to comply with the System. However, these expenditures will not exceed an aggregate amount of $10,000 during the term of the agreement.
This means that Craters & Freighters franchisees may be required to spend up to $10,000 during the term of the agreement to comply with changes to the Craters & Freighters system, including changes to the Marks. These costs are not limited or capped by Craters & Freighters in any way.
While the Marketing Fund may be used for marketing, advertising, and promotional efforts, Craters & Freighters is not obligated to expend Marketing Fund monies on Franchisee's behalf or benefit or to expend Marketing Fund monies equivalent or proportionate to Franchisee's contributions or Franchisee's benefit. Craters & Freighters does not guarantee that advertising expenditures from the Marketing Fund will benefit Franchisee or any other franchisee directly, on a pro rata basis.