factual

What index is used to adjust fixed dollar amounts in the Craters & Freighters Franchise Agreement?

Craters_Freighters Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 3.8 CPI Adjustments.

All fixed dollar amounts referenced in this Agreement may increase annually based on increases in th

Source: Item 22 — CONTRACTS (FDD pages 49–50)

What This Means (2025 FDD)

According to the 2025 Craters & Freighters Franchise Disclosure Document, fixed dollar amounts referenced in the Franchise Agreement may increase annually based on increases in the CPI. This is mentioned in section 3.8 of Item 22, which discusses contracts.

For a prospective franchisee, this means that certain fees or required expenditures outlined in the agreement could rise over time due to inflation. The specific amounts subject to adjustment and the method of calculation would be detailed elsewhere in the agreement, but this clause establishes the potential for annual increases tied to the Consumer Price Index (CPI).

It is important for franchisees to understand how these adjustments could impact their overall costs and financial planning. While the FDD mentions the potential for CPI adjustments, it does not specify which particular fixed dollar amounts are subject to this clause. A prospective franchisee should carefully review the entire Franchise Agreement to identify all such amounts and understand the specific formula used to calculate the annual adjustments. This will allow for a more accurate assessment of the potential financial impact over the term of the agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.