What is the impact of non-payment of Royalty Fees on the Craters & Freighters Franchise Agreement?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, failing to pay royalty fees can have serious repercussions for a franchisee. Craters & Freighters considers the non-payment of royalty fees a default of the Franchise Agreement.
This default gives Craters & Freighters the right to terminate the Franchise Agreement. This means that if a franchisee fails to pay their royalty fees, Craters & Freighters can end the franchise relationship, effectively closing the franchisee's business.
Craters & Freighters also has the right to collect royalty fees more frequently (e.g., weekly) upon thirty (30) days' prior written notice to Franchisee.