What is the minimum monthly royalty fee for a Craters & Freighters franchise during its third year of operation?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
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ATTACHMENT B TO FRANCHISE AGREEMENT
ATTACHMENT B MINIMUM PERFORMANCE STANDARDS AND MINIMUM MONTHLY ROYALTY FEES
| Year of Operation | Minimum Performance Standard | Minimum Monthly Royalty Fee | |----------
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to Craters & Freighters's 2025 Franchise Disclosure Document, the minimum monthly royalty fee during the third year of operation is $2,125. This minimum royalty fee is part of the Minimum Performance Standards outlined in Attachment B of the Franchise Agreement.
It's important to note that this is a minimum royalty fee. Craters & Freighters franchisees are obligated to pay royalty fees based on a percentage of their Adjusted Gross Sales, as detailed in Section 3.2 of the Franchise Agreement. If the royalty calculation based on Adjusted Gross Sales exceeds the minimum monthly royalty fee, the franchisee will pay the higher amount. This ensures that Craters & Freighters receives a fair return based on the franchisee's actual sales performance.
The Minimum Performance Standards also include a minimum performance standard of $510,000 for the third year of operation. Failing to meet these minimum performance standards could give Craters & Freighters the right to reduce the size of, or otherwise modify, the franchisee's territory after providing 30 days' written notice. Therefore, franchisees need to focus on achieving sales targets to maintain their territory and avoid potential penalties.