When is the initial franchise fee due to Craters & Freighters?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure (1) | Low Amount | High Amount | Method of Payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|---|
| Initial Franchise Fee (2) | $35,000 | $45,000 | Cash | Upon Execution of Franchise Agreement | Us |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–18)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the initial franchise fee, ranging from $35,000 to $45,000, is due upon the execution of the Franchise Agreement. This fee is paid in cash to Craters & Freighters. Note that if a prospective franchisee requests and Craters & Freighters approves a territory with a population of more than 1,000,000 people, the franchisee will be required to pay a Supplemental Territory Fee of $0.015 per additional person in the Territory in addition to an Initial Franchise Fee of $45,000. All fees imposed by Craters & Freighters are non-refundable unless otherwise noted.
In the franchise industry, it is typical for the initial franchise fee to be due when the franchise agreement is signed. This payment secures the franchisee's rights to operate under the Craters & Freighters brand and utilize their system. The initial franchise fee provides Craters & Freighters with capital to fund initial support and training for the new franchisee.
Prospective franchisees should be aware of this payment schedule and factor it into their financial planning. They should also carefully review the franchise agreement to understand the specific terms and conditions related to the initial franchise fee, including any circumstances under which it may be refundable. Understanding the timing and amount of this fee is a crucial step in evaluating the overall financial commitment required to become a Craters & Freighters franchisee.