How are fees adjusted based on CPI for a Craters & Freighters franchise?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Department of Labor (or such equivalent index as may be adopted in the future), or a comparable index Franchisor selects if the CPI is no longer published.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, all fixed dollar amounts referenced in the agreement may increase annually based on the Consumer Price Index (CPI). This index is maintained by the U.S. Department of Labor.
If the U.S. Department of Labor stops publishing the CPI, Craters & Freighters can select a comparable index to use for these adjustments. This ensures that the franchise fees can be adjusted for inflation even if the original index becomes unavailable.
For a prospective franchisee, this means that certain fixed costs associated with the franchise may increase over time due to inflation. It is important to factor in potential CPI-related increases when projecting the costs and profitability of a Craters & Freighters franchise.