Can Craters & Freighters use the Marketing Fund to develop franchisee geosites?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
The Marketing Fund may also be used to meet any and all costs of maintaining, administering, directing, and preparing marketing, advertising, and promotional efforts and programs including, but not limited to: direct mail advertising; local, regional, and national promotions; call centers; market research; public relations activities; developing and maintaining Franchisor's Website and franchisee geosites (including the Franchisee Geosite); employing marketing, advertising, and public relations agencies (including the payment of commissions); purchasing promotional items; attending trade shows; providing other marketing materials and services to Craters & Freighters Franchised Businesses operating under the System; and other marketing, advertising, and promotional activities.
These costs may include the proportionate salary share of employees of Franchisor or any Affiliate of Franchisor who devote time and render services for marketing, advertising, or promotion, or the administration of the Marketing Fund; such costs may include administrative costs, salaries, and overhead expenses.
No part of the Marketing Fund will be used by Franchisor to defray any of Franchisor's general operating expenses, other than those reasonably allocable to the marketing, advertising, or promotional activities described in this Section or other activities reasonably related to the administration or direction of the Marketing Fund.
Franchisor, any Affiliate of Franchisor, and Franchisor's 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 Franchisor, any Affiliate of Franchisor, and Franchisor's authorized representatives may incur relating to programs funded by the Marketing Fund.
The Marketing Fund is intended to maximize the general brand recognition of the System, and Franchisor 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.
Franchisor does not guarantee that advertising expenditures from the Marketing Fund will benefit Franchisee or any other franchisee directly, on a pro rata basis,
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, the Marketing Fund can be used to develop franchisee geosites. Specifically, the Marketing Fund may cover the costs of maintaining and preparing marketing and advertising programs, including developing and maintaining the franchisor's website and franchisee geosites. This includes the Franchisee Geosite.
This means that Craters & Freighters has the discretion to allocate funds from the Marketing Fund to create and support online platforms tailored to individual franchisees. These geosites can help franchisees establish a local online presence and attract customers in their specific territories.
However, Craters & Freighters is not obligated to expend Marketing Fund monies on any franchisee's behalf or to expend monies equivalent or proportionate to a franchisee's contributions or benefit. The franchisor also does not guarantee that advertising expenditures from the Marketing Fund will benefit any franchisee directly or on a pro rata basis. This indicates that while the Marketing Fund can be used for franchisee geosites, there is no guarantee that it will, or that every franchisee will benefit equally from it.