What is the required contribution to the Marketing Fund for Craters & Freighters franchisees?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
um Performance Standards, Franchisor will have the right to reduce the size of, or otherwise modify, Franchisee's Territory upon providing 30 days' written notice to Franchisee.
- 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.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, franchisees are required to contribute to the Marketing Fund. This contribution, referred to as the "Marketing Fund Contribution," is equal to one percent (1%) of the Adjusted Gross Sales generated by the franchised business during the previous month. This contribution is payable monthly, coinciding with the payment of the monthly Royalty Fee.
Craters & Freighters retains the right to increase this contribution up to a maximum of two percent (2%) of the Adjusted Gross Sales. However, they must provide the franchisee with thirty (30) days' notice before implementing such an increase.
This Marketing Fund is used by Craters & Freighters for various marketing, advertising, and promotional activities to enhance brand recognition. These activities may include direct mail advertising, local, regional, and national promotions, market research, public relations, website maintenance, and other related efforts. While the fund aims to benefit the entire Craters & Freighters system, there is no guarantee that individual franchisees will directly benefit from the expenditures in proportion to their contributions.