If a Craters & Freighters franchisee requests a territory with more than 1,000,000 people, does Craters & Freighters have to approve it?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
We offer two types of territories: one which will have a population under 1,000,000 people, and another which will have a population of 1,000,000 or more people. 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 equal to $0.015 per additional person in the Territory in addition to the Initial Franchise Fee of $45,000. All population
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2025 FDD)
According to Craters & Freighters's 2025 Franchise Disclosure Document, Craters & Freighters offers two types of territories: one with a population under 1,000,000 people and another with a population of 1,000,000 or more people. However, if a prospective franchisee requests a territory with a population of more than 1,000,000 people, Craters & Freighters's approval is required.
If Craters & Freighters approves a territory with a population exceeding 1,000,000, the franchisee must pay a Supplemental Territory Fee. This fee is calculated as $0.015 per additional person in the territory, in addition to the initial franchise fee of $45,000. The population count is determined using the latest United States Census information available for the territories.
This policy means that while a franchisee can request a larger territory, Craters & Freighters has the discretion to approve or deny the request. If approved, the franchisee will incur an additional cost based on the population size exceeding the 1,000,000 threshold. This fee structure incentivizes franchisees to carefully consider the size and potential of their territory while providing Craters & Freighters with additional revenue for larger, potentially more profitable territories.