What is the dependency between the territory population and the Craters & Freighters initial franchise fee?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
You must pay us an initial franchise fee ("Initial Franchise Fee") of $35,000 for a Territory with a population under 1,000,000 people, or an Initial Franchise Fee of $45,000 for a Territory with 1,000,000 or more people (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 ("Supplemental Territory Fee") of $0.015 per additional person in the Territory in addition to the Initial Franchise Fee. The Initial Franchise Fee and the Supplemental Territory Fee, if applicable, are due to us in a lump sum at the time you sign the Franchise Agreement and are non-refundable for any reason once paid.
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the initial franchise fee is directly related to the population of the territory. For a territory with a population under 1,000,000 people, the initial franchise fee is $35,000. However, for a territory with a population of 1,000,000 or more people, the initial franchise fee increases to $45,000.
In addition to the standard initial franchise fee, Craters & Freighters also charges a supplemental territory fee if a franchisee requests and is approved for a territory with a population exceeding 1,000,000 people. This supplemental fee is calculated at a rate of $0.015 per additional person in the territory. This means that the initial investment can vary significantly based on the specific demographics of the chosen territory.
For a prospective Craters & Freighters franchisee, this means carefully evaluating the population and potential market size of the territory is crucial. While a larger population might offer greater revenue potential, it also comes with a higher initial investment due to the increased franchise fees. It's important to note that both the initial franchise fee and any supplemental territory fees are paid in a lump sum when signing the Franchise Agreement and are non-refundable, regardless of the reason.