Does Craters & Freighters use the Marketing Fund to solicit new franchisees?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor does not spend any of funds collected by the Marketing Fund on directly soliciting new franchisees. Any unused funds in any calendar year will be applied to the following year's funds, and Franchisor reserves the right to contribute or loan additional funds to the Marketing Fund on any terms Franchisor deems reasonable. Upon request, Franchisor will make available to Franchisee an annual accounting for the Marketing Fund that shows how the Marketing Fund proceeds have been spent for the previous year.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the company does not use any of the funds collected by the Marketing Fund to directly solicit new franchisees. Craters & Freighters states that any unused funds in any calendar year will be applied to the following year's funds. The company also reserves the right to contribute or loan additional funds to the Marketing Fund on any terms it deems reasonable.
This means that the Marketing Fund is strictly for marketing, advertising, and promotional activities related to the Craters & Freighters brand and its services, and not for recruiting new franchisees. A prospective franchisee can be assured that their contributions to the marketing fund will not be used for franchise sales purposes.
Craters & Freighters will make available to the franchisee an annual accounting for the Marketing Fund that shows how the Marketing Fund proceeds have been spent for the previous year, upon request.