factual

Can Craters & Freighters reimburse themselves from the Marketing Fund for independent audits?

Craters_Freighters Franchise · 2025 FDD

Answer from 2025 FDD Document

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 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 22–29)

What This Means (2025 FDD)

According to Craters & Freighters' 2025 Franchise Disclosure Document, Craters & Freighters, its affiliates, and authorized representatives can be reimbursed from the Marketing Fund for several expenses. These expenses include administrative costs, independent audits, reasonable accounting, bookkeeping, reporting and legal expenses, taxes, and all other reasonable direct or indirect expenses related to programs funded by the Marketing Fund.

This means that a portion of the funds that Craters & Freighters franchisees contribute to the Marketing Fund can be used to cover the costs of independent audits conducted for the Marketing Fund. This is a fairly standard practice in franchising, as it ensures that the Marketing Fund is managed responsibly and transparently.

For a prospective Craters & Freighters franchisee, this indicates that while a portion of their Marketing Fund contributions may go towards audits, it also provides assurance that the fund's financials are being checked by an independent third party. Franchisees have the right to request an annual accounting that shows how the Marketing Fund proceeds have been spent for the previous year.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.