Does Craters & Freighters have the right to establish maximum resale prices as part of a regional promotion?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
ls or other communications from prospective customers located in the Territory to Franchisee. Franchisor reserves the right to use Marketing Fund monies for such call center(s).
- 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.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 36)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Craters & Freighters franchise agreement does not explicitly state whether Craters & Freighters has the right to establish maximum resale prices as part of a regional promotion. However, the document does state that Craters & Freighters can establish one or more marketing cooperatives in a geographic area where two or more Craters & Freighters outlets are located. If a Cooperative is established for a geographic area where the Franchised Business is located, the Franchisee must become a member of the Cooperative and abide by the rules of the Cooperative.
Also, the Craters & Freighters FDD states that the Marketing Fund will be used exclusively for the purpose of promoting the System and that Craters & Freighters 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.
Because the FDD does not explicitly address the establishment of maximum resale prices, it is important for a prospective franchisee to clarify with Craters & Freighters whether participation in a cooperative or regional promotion could mandate adherence to specific pricing guidelines. This will help the franchisee understand the extent of their pricing autonomy and how it might be influenced by regional marketing strategies.