What is the maximum relocation fee that Craters & Freighters can charge?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer | $15,000 | Prior to consummation of transfer. | Payable to us when you sell your Franchised Business, but no charge if the Franchised Business is transferred by you to a corporation or other legal entity which you control. |
| Relocation | Reimbursement of the costs and expenses we incur in connection with evaluating any relocation request, not to exceed $2,500. | As incurred. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, if a franchisee chooses to relocate their business, Craters & Freighters may charge a relocation fee. This fee is to reimburse Craters & Freighters for the costs and expenses they incur while evaluating the relocation request. The maximum amount Craters & Freighters can charge for this relocation is $2,500.
It is important to note that this fee is only payable if the franchisee relocates the premises of their franchised business. Furthermore, the franchisee must obtain prior written consent from Craters & Freighters before any relocation takes place. This suggests that relocation is not guaranteed and is subject to Craters & Freighters' approval.
This type of fee is not uncommon in franchising, as franchisors often want to ensure that any relocation of a franchise location will not negatively impact the brand or other franchisees in the area. The $2,500 cap provides some certainty for the franchisee, but it is crucial to understand what specific costs and expenses Craters & Freighters will include in this reimbursement. A prospective franchisee should inquire about typical relocation costs and the factors that Craters & Freighters considers when evaluating a relocation request.