What is the dependency between the Technology Fee and the email accounts provided by Craters & Freighters?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
Business. Franchisor reserves the right to require Franchisee to pay a portion or the entire amount of such Individual Advertising Expense to an approved supplier of Franchisor.
- 3.6 Technology Fee. Each month throughout the duration of this Agreement, Franchisee must pay to Franchisor a technology fee ("Technology Fee") in the amount of Franchisor's thencurrent rate for such Technology Fee, relating to software subscription(s), up to seven (7) email accounts established for the Franchised Business, Geosite domain registration, other technology enhancements, and maintenance and support of the same provided by Franchisor or its designee(s). Franchisor reserves the right to increase such Technology Fee from time to time during the Term of this Agreement, so long as Franchisor provides Franchisee with thirty (30) days' notice of such increase; provided, however, the Technology Fee will not exceed the amount of Seven Hundred Fifty Dollars ($750) per month. In the event Franchisee requests any additional email accounts (i.e., more than seven (7) email accounts), the Technology Fee paid by Franchisee will be increased by the amount of Franchisor's then-current rate for such email account(s). The Technology Fee is payable monthly at the same time and in the same manner as the monthly Royalty Fee.
- 3.7 Insurance Payment. Each month throughout the duration of this Agreement, Franchisee must pay to Franchisor a payment ("Insurance Payment") relating to insurance secured by Franchisor on behalf of Franchisee as part of a system-wide program.
- 3.8 CPI Adjustments. All fixed dollar amounts referenced in this Agreement may increase annually based on increases in the Consumer Price Index ("CPI") maintained by the U.S.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the Technology Fee is directly related to the email accounts provided to franchisees. As part of the Technology Fee, Craters & Freighters will establish up to seven email accounts for the franchisee to use specifically for the franchised business. This is considered partial consideration for the Technology Fee payment. The Technology Fee covers software subscriptions, Geosite domain registration, technology enhancements, and maintenance and support.
If a franchisee requires more than the initial seven email accounts, the Technology Fee will increase. The franchisee will be charged Craters & Freighters' then-current rate for each additional email account requested. This additional charge will be added to the franchisee's Technology Fee.
The Technology Fee is subject to change during the term of the agreement, but Craters & Freighters must provide a 30-day notice before increasing the fee. However, the Technology Fee will not exceed $750 per month. The Technology Fee is payable monthly, at the same time and in the same manner as the monthly Royalty Fee.