What is the condition that requires a Craters & Freighters franchisee to pay a Supplemental Territory Fee?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
You must pay us an Initial Franchise Fee of $35,000 or $45,000 (See ITEM 12). If you request, and we approve, a Territory with a population of more than 1,000,000 people, then you will be required to pay us a Supplemental Territory Fee of $0.015 per additional person in the Territory in addition to an Initial Franchise Fee of $45,000.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–18)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, a franchisee will be required to pay a Supplemental Territory Fee if they request and are approved for a territory with a population of more than 1,000,000 people. In addition to the $45,000 initial franchise fee, the franchisee must pay $0.015 per additional person in the territory.
For example, if a prospective Craters & Freighters franchisee requests a territory with a population of 1,500,000, and it is approved, they will pay the initial franchise fee of $45,000. They will also pay a supplemental territory fee of $7,500, calculated as $0.015 multiplied by the 500,000 people exceeding the 1,000,000 threshold. This supplemental fee increases the overall initial investment.
This condition is important for prospective franchisees to consider when evaluating potential territories. Larger territories may offer greater revenue potential, but the additional fee can significantly increase the initial investment required to start the franchise. Franchisees should carefully analyze the population demographics and market potential of a territory before requesting it, weighing the potential benefits against the additional cost of the supplemental territory fee.