What fees and expenses are associated with a Craters & Freighters franchise?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges and agrees that it is obligated to pay Royalty Fees to Franchisor, in accordance with Section 3.2 of this Agreement, on all Adjusted Gross Sales (as hereafter defined) from customers residing or operating within the Territory and any Adjacent Territory.
Franchisor reserves the right to collect the Royalty Fee more frequently (e.g., weekly) upon thirty (30) days' prior written notice to Franchisee. Non-payment of any Royalty Fees will be deemed a default under this Agreement and will provide Franchisor a basis to terminate this Agreement. "Adjusted Gross Sales" means the total of all amounts received from customers for services performed and products sold from, at or in connection wi
Prior to the opening of the Franchised Business, Franchisor will furnish Franchisee with an initial training program regarding the operation of a Craters & Freighters Franchised Business in accordance with Franchisor's then-current initial training program (collectively, "Initial Training Program"). There is no limit on the number of people who may participate in the Initial Training Program, so long as Franchisee's owner(s) and the Designated Manager (as such term is defined below) participate and complete the Initial Training Program to Franchisor's satisfaction prior to opening the Franchised Business. Franchisee will be responsible for all travel and living expenses incurred in connection with participating in the Initial Training Program. If Franchisor determines it is necessary, Franchisor or a designee of Franchisor will provide Franchisee with approximately three (3) days of additional training at the Premises during normal business hours after the Franchised Business has opened. If Franchisor determines that
Franchisee needs more than the three (3) days of additional training referenced in the preceding sentence, Franchisee will pay to Franchisor an amount equal to Franchisor's then current daily rate and will reimburse Franchisor for the out-of-pocket expenses it incurred in providing such training including, but not limited to all travel and living expenses.
Franchisee will be solely responsible for developing and furnishing the Premises. Franchisor will provide to Franchisee mandatory or suggested specifications for the premises of a Craters & Freighters Franchised Business including but not limited to those involving dimensions, design, image, interior layout, décor, fixtures, Equipment, computer hardware and software, signs, and color scheme which Franchisor has approved based on its standards for quality, design, appearance, function, and performance. Franchisee must provide Franchisor with the construction plans for the Premises ("Construction Plans"), and receive Franchisor's written approval of such Construction Plans, before construction of the Premises commences.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
I am unable to provide a comprehensive list of fees and expenses associated with a Craters & Freighters franchise, according to the 2025 Franchise Disclosure Document, as the provided excerpts do not list all the associated fees and expenses. The excerpts do mention royalty fees, which franchisees must pay to Craters & Freighters based on Adjusted Gross Sales from customers within their territory and any adjacent territory they are authorized to serve. The frequency of royalty fee collection can be adjusted by Craters & Freighters with 30 days' notice. Failure to pay royalty fees can result in termination of the franchise agreement.
Franchisees are also responsible for travel and living expenses related to the initial training program. If additional training is needed beyond the initial three days at the franchisee's location, the franchisee will incur costs for Craters & Freighters' daily rate and out-of-pocket expenses for the additional training.
Furthermore, franchisees are responsible for securing and developing their business premises, including lease costs and construction expenses. The lease must be approved by Craters & Freighters, and construction plans must meet their standards. To get a complete picture of all fees and expenses, a prospective franchisee should carefully review Item 5 and Item 6 of the 2025 Craters & Freighters Franchise Disclosure Document and consult with existing franchisees.