Does the Craters & Freighters franchise agreement include a technology fee?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.4 Proprietary Software and Other Software.
Franchisor will develop, maintain, and grant Franchisee the right to use Franchisor's proprietary operating software ("Proprietary Software").
The Proprietary Software will be the central platform the Franchised Business uses to process customer jobs from start to finish with consistency, efficiency, and accuracy.
Additionally, all royalty reports submitted by the Franchised Business will be managed exclusively through the Proprietary Software, which is also designed to assist Franchisee in streamlining operations and complying with Franchisor's standards.
Franchisor will also require Franchisee to use select software, as solely determined by Franchisor.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, franchisees are required to use proprietary software developed and maintained by the franchisor. The document states that Craters & Freighters will develop, maintain, and grant the franchisee the right to use its proprietary operating software. This software serves as the central platform for processing customer jobs, managing royalty reports, and streamlining operations to comply with the franchisor's standards.
Additionally, Craters & Freighters may require franchisees to use select software as determined solely by the franchisor. While the FDD specifies the use of proprietary software, it does not explicitly mention a separate, ongoing "technology fee." The franchisee is granted the right to use the software, and it is maintained by the franchisor.
Prospective franchisees should clarify with Craters & Freighters whether the costs associated with the mandatory proprietary software and any other required software are included in other fees, such as the royalty fee, or if there are any separate technology-related costs. Understanding the full scope of technology expenses is crucial for assessing the overall investment and operational costs of the franchise.