Does Craters & Freighters reserve the right to form, change, or dissolve any Cooperative at any time?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.8 Marketing Cooperatives. Franchisor reserves the right to establish one or more marketing cooperatives (each a "Cooperative"). Specifically, Franchisor may designate any geographic area in which two (2) or more Craters & Freighters outlets are located as a region for establishing a Cooperative. If a Cooperative is established for a geographic area where the Franchised Business is located, Franchisee must become a member of the Cooperative and abide by the rules of the Cooperative. All amounts contributed by Franchisee to a Cooperative will count towards the Individual Advertising Expense. Franchisor reserves the right to form, change, or dissolve any such Cooperative at any time.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, Craters & Freighters retains the right to establish marketing cooperatives. Craters & Freighters may designate a geographic area with two or more Craters & Freighters outlets as a region for establishing a Cooperative.
If a Cooperative is established in the area where a Craters & Freighters franchise is located, the franchisee must become a member and adhere to the Cooperative's rules. All amounts contributed by the franchisee to a Cooperative will count towards the Individual Advertising Expense.
Importantly, Craters & Freighters reserves the right to form, change, or dissolve any Cooperative at any time. This gives Craters & Freighters significant control over the marketing efforts and strategies within specific regions, and franchisees must be prepared for potential changes in the structure and requirements of these cooperatives.