When is the initial franchise fee and supplemental territory fee due to Craters & Freighters?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
You must pay us an initial franchise fee ("Initial Franchise Fee") of $35,000 for a Territory with a population under 1,000,000 people, or an Initial Franchise Fee of $45,000 for a Territory with 1,000,000 or more people (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 ("Supplemental Territory Fee") of $0.015 per additional person in the Territory in addition to the Initial Franchise Fee. The Initial Franchise Fee and the Supplemental Territory Fee, if applicable, are due to us in a lump sum at the time you sign the Franchise Agreement and are non-refundable for any reason once paid. We collected an Initial Franchise Fee of $88,255 in connection with our sale of one Franchised Business during 2024.
We participate in the VetFran program. Under this program, qualified veterans of the United States armed forces receive a $5,000 discount on the Initial Franchise Fee. To qualify, you must show evidence of an honorable discharge.
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the initial franchise fee and supplemental territory fee, if applicable, are due in a lump sum when you sign the Franchise Agreement. These fees are non-refundable for any reason once paid.
The initial franchise fee is $35,000 for a territory with a population under 1,000,000 people. For a territory with a population of 1,000,000 or more people, the initial franchise fee is $45,000. In addition to the initial franchise fee, if you request and Craters & Freighters approves a territory with a population of more than 1,000,000 people, you must pay a supplemental territory fee of $0.015 per additional person in the territory.
For example, if you were granted a territory with a population of 1,500,000, you would pay the initial franchise fee of $45,000, plus a supplemental territory fee of $7,500 (500,000 additional people x $0.015). This would bring your total initial fees to $52,500. Craters & Freighters also participates in the VetFran program, which provides qualified veterans of the United States armed forces a $5,000 discount on the initial franchise fee, requiring evidence of an honorable discharge to qualify.