When is the Initial Franchise Fee due for a Craters & Freighters franchise?
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 |
- (2) You must pay us an Initial Franchise Fee of $35,000 or $45,000 (See ITEM 12). 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 of $0.015 per additional person in the Territory in addition to an Initial Franchise Fee of $45,000.
- (1) All fees imposed by us are non-refundable unless otherwise noted. Fees and expenses paid to vendors or other third parties may or may not be refundable depending on the arrangements you make with them.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–18)
What This Means (2025 FDD)
According to Craters & Freighters's 2025 Franchise Disclosure Document, the Initial Franchise Fee is due upon the execution of the Franchise Agreement. The fee ranges from $35,000 to $45,000, payable in cash to Craters & Freighters.
For a prospective Craters & Freighters franchisee, this means that you must have the funds available when you sign the franchise agreement. This is a standard practice in franchising, as the initial fee compensates the franchisor for granting you the rights to use their brand, system, and intellectual property.
It's important to note that this fee is generally non-refundable, as stated in the notes of Item 7. Additionally, if you request and Craters & Freighters approves a territory with a population of more than 1,000,000 people, you will be required to pay a Supplemental Territory Fee of $0.015 per additional person in the Territory, in addition to the initial franchise fee of $45,000.