What is the maximum monthly Technology Fee that Craters & Freighters can charge a franchisee?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Individual Advertising Expense | Greater of (a) $6,000, or (b) one percent (1%) of your Adjusted Gross Sales for the prior calendar year. In either case, this amount will not exceed $18,000. | As incurred. | Each year, you must spend this amount on advertising and promotion of your Franchised Business in your Territory. You must submit annual reports to us reflecting advertising expenditures, which must be utilized only for marketing, promotions, and advertising of the Franchised Business. We reserve the right to require you to pay the amount of the Individual Advertising Expense to a designated or approved supplier of ours. |
| Technology Fee | Currently $500 per month. We reserve the right to increase this amount upon 30 days written notice to you. However, this amount will not exceed $750 per month. | Same as Royalty Fee. | This fee relates to software subscription(s) (including the subscription for the Proprietary Software), up to seven (7) email accounts established for the Franchised Business, Geosite domain registration, other technology enhancements, and maintenance and support of the same provided by us or our designee(s). In the event you ask us to establish more than seven (7) email accounts for your Franchised Business, your Technology Fee will increase based on our current rate for establishing an email account, which is currently $15 per month per email account. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the maximum monthly Technology Fee is $750. The Technology Fee is paid at the same time as the Royalty Fee. This fee covers software subscriptions, including the Proprietary Software, up to seven email accounts, Geosite domain registration, other technology enhancements, and maintenance and support. The current Technology Fee is $500 per month, but Craters & Freighters reserves the right to increase it with 30 days' written notice.
If a franchisee requires more than seven email accounts, the Technology Fee will increase. The current rate for establishing an additional email account is $15 per month per email account. For example, if a franchisee needs ten email accounts, they would pay an extra $45 per month (3 additional email accounts x $15). This is in addition to the base Technology Fee, which can increase up to $750 per month.
It is important for prospective franchisees to consider the potential for increased Technology Fees, especially if they anticipate needing more than the standard seven email accounts. They should also factor in the possibility of the base Technology Fee increasing up to the maximum of $750 per month. Understanding these costs is crucial for accurate financial planning and assessing the overall profitability of a Craters & Freighters franchise.