What is the definition of 'Supplemental Territory Fee' for Craters & Freighters?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
We offer two types of territories (each a "Territory"): one which will have a population under 1,000,000 people, and another which will have a population of 1,000,000 or more people. 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 equal to $0.015 per additional person in the Territory. All population determinations will be based upon the latest United States Census information available for the various territories.
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, a Supplemental Territory Fee is required if a franchisee requests and is approved for a territory with a population of more than 1,000,000 people. The fee is calculated as $0.015 per additional person in the territory exceeding 1,000,000. For example, if a territory has a population of 1,500,000, the additional population is 500,000, resulting in a Supplemental Territory Fee of $7,500 (500,000 x $0.015).
The FDD specifies that all population determinations are based on the latest United States Census information available for the various territories. This ensures a standardized and objective method for calculating the fee, reducing potential disputes over territory size.
This fee is in addition to the standard initial franchise fee, which is $35,000 for territories with a population of fewer than 1,000,000 people and $45,000 for territories with a population of 1,000,000 people or more. Therefore, franchisees considering larger territories should factor in this additional cost when evaluating the financial investment required to start a Craters & Freighters franchise.