Does the Craters & Freighters franchisee have to pay for the franchisor's out-of-pocket expenses for additional training?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, franchisees may have to cover the franchisor's out-of-pocket expenses for additional training in certain situations. Specifically, Craters & Freighters will provide an initial training program, and if the franchisor determines that a franchisee needs more than three days of additional training after the business opens, the franchisee is responsible for covering these costs.
This includes paying Craters & Freighters the then-current daily rate for the training time, as well as reimbursing the franchisor for all out-of-pocket expenses incurred during the training. These expenses include, but are not limited to, travel and living costs for the Craters & Freighters trainers.
This means that franchisees should budget for potential additional training costs beyond the initial program. The amount will depend on the daily rate at the time the training is needed and the travel and living expenses incurred by the franchisor. Franchisees should discuss with Craters & Freighters what factors might lead to needing additional training and how they can minimize these potential costs.