What is the Minimum Monthly Royalty Fee for a Craters & Freighters franchise in year 1 of operation?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| Year of Operation | Minimum Performance Standard | Minimum Monthly Royalty Fee |
|---|---|---|
| 1 | $200,000 | $0 |
| 2 | $400,000 | $1,667 |
| 3 | $510,000 | $2,125 |
Source: Item 12 — TERRITORY (FDD pages 29–32)
What This Means (2025 FDD)
According to Craters & Freighters's 2025 Franchise Disclosure Document, franchisees are required to meet a minimum performance standard and may be subject to a minimum monthly royalty fee. The minimum performance standards and minimum monthly royalty fees for years 4-15 of the Franchise Agreement are determined at the end of year 3.
For the first year of operation, Craters & Freighters franchisees have a minimum performance standard of $200,000. However, the minimum monthly royalty fee for the first year is $0.
In the second year, the minimum performance standard increases to $400,000, and the minimum monthly royalty fee is $1,667. By the third year, the minimum performance standard is $510,000, with a minimum monthly royalty fee of $2,125. Failing to meet these minimum performance standards could result in a reduction or modification of the franchisee's territory.