What is the amount of the transfer fee required by Craters & Freighters?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
isees and franchisee owners.
- 16.3.5 Training. The transferee and/or its management personnel have completed Franchisor's Initial Training Program to Franchisor's satisfaction.
- 16.3.6 Transfer Fee. Franchisee or the transferee has paid Franchisor a transfer fee ("Transfer Fee") in the amount of Fifteen Thousand
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to Craters & Freighters's 2025 Franchise Disclosure Document, a franchisee must pay a transfer fee of $15,000.00 to the franchisor to cover expenses related to the transfer of the franchise. This fee is required unless the transfer is to or among then-existing owners of the franchisee.
Several conditions must be met for Craters & Freighters to approve the transfer. The franchisee and its owners must be in full compliance with the existing agreement. All outstanding payments, including royalty fees, marketing fund contributions, and insurance payments, must be settled. The transferee must meet Craters & Freighters's standards for franchisees, including demonstrating good moral character, sufficient business experience, and adequate financial resources. The transferee and/or their management must also complete the initial training program to the franchisor's satisfaction.
Additionally, both the franchisee and its owners must execute a general release of claims against Craters & Freighters. The franchisor must also approve the material terms of the transfer, ensuring that the financial terms do not adversely affect the transferee's ability to operate the business. If the franchisee finances any part of the sale, they must agree that the transferee's obligations under any promissory notes or security interests are subordinate to the franchisor's rights.