What condition triggers the audit fee for a Craters & Freighters franchise?

Question

Accepted Answer

| Type of Fee (1)              | Amount                                                                                                                                                                                                                                                                                                   | Due Date                                                        | Remarks                                                                                                                                                                                                                                                                                                |
|------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Transfer | \$15,000 | Prior to consummation of transfer. | Payable to us when you sell your Franchised Business, but no charge if the Franchised Business is transferred by you to a corporation or other legal entity which you control. |
| Relocation | Reimbursement of the costs and expenses we incur in connection with evaluating any relocation request, not to exceed \$2,500. | As incurred. | Payable to us if you relocate the premises of your Franchised Business. You must obtain our prior written consent to any such relocation. |
| Audit | Cost of audit plus expenses. | On billing. | Payable to us only if audit shows an understatement of at least 5% of Adjusted Gross Sales for any reporting period. |
| Successor Fee | \$5,000. | Payable at time of signing successor franchise agreement. | Payable to us. |
| Attorney Fees | Actual cost. | On billing. | If we are forced to seek action to collect fees owed, you will be charged attorney fees. |
| Interest | 1.5% per month. | As due. | Interest will be charged on past due royalty fees. |
| Convention Attendance Fee | \$150 per person. | As incurred. | Franchisee owners or their designees are required to attend our annual convention. This fee is payable to us. We reserve the right to change this fee at any time. |
| Additional Training | Will vary under circumstances. Our current daily rate is \$500 per day plus reimbursement for out-of pocket expenses we incur in providing such training, including but not limited to all travel and living expenses. We reserve the right to increase this amount. | As incurred. | Payable to us if we provide you with additional on-site visits at your reasonable request or if such assistance is determined to be necessary in our discretion, including the training of any Designated Manager you may engage after opening your Franchised Business. |

Source: Item 6 — OTHER FEES (FDD pages 12–16)

What condition triggers the audit fee for a Craters & Freighters franchise?

Answer from 2025 FDD Document

What This Means (2025 FDD)

Type of Fee (1)	Amount	Due Date	Remarks
Transfer	$15,000	Prior to consummation of transfer.	Payable to us when you sell your Franchised Business, but no charge if the Franchised Business is transferred by you to a corporation or other legal entity which you control.
Relocation	Reimbursement of the costs and expenses we incur in connection with evaluating any relocation request, not to exceed $2,500.	As incurred.	Payable to us if you relocate the premises of your Franchised Business. You must obtain our prior written consent to any such relocation.
Audit	Cost of audit plus expenses.	On billing.	Payable to us only if audit shows an understatement of at least 5% of Adjusted Gross Sales for any reporting period.
Successor Fee	$5,000.	Payable at time of signing successor franchise agreement.	Payable to us.
Attorney Fees	Actual cost.	On billing.	If we are forced to seek action to collect fees owed, you will be charged attorney fees.
Interest	1.5% per month.	As due.	Interest will be charged on past due royalty fees.
Convention Attendance Fee	$150 per person.	As incurred.	Franchisee owners or their designees are required to attend our annual convention. This fee is payable to us. We reserve the right to change this fee at any time.
Additional Training	Will vary under circumstances. Our current daily rate is $500 per day plus reimbursement for out-of pocket expenses we incur in providing such training, including but not limited to all travel and living expenses. We reserve the right to increase this amount.	As incurred.	Payable to us if we provide you with additional on-site visits at your reasonable request or if such assistance is determined to be necessary in our discretion, including the training of any Designated Manager you may engage after opening your Franchised Business.