What is the Minimum Monthly Royalty Fee for a Craters & Freighters franchise in year 2 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, the minimum monthly royalty fee for a franchise in its second year of operation is $1,667. This fee is tied to a minimum performance standard of $400,000 in annual revenue for that year.
This means that as a Craters & Freighters franchisee, you are obligated to pay a minimum royalty of $1,667 each month during your second year, provided you meet the minimum performance standard of $400,000 in annual revenue. If your revenue falls short of this standard, it's important to understand the potential consequences, as the FDD states that failure to meet Minimum Performance Standards may result in the reduction or modification of your Territory.
It's crucial for prospective franchisees to factor this monthly royalty fee into their financial projections and business plans. While the initial royalty is $0 in the first year, it increases significantly in the second year. Understanding these financial obligations and performance benchmarks is essential for the long-term success and sustainability of a Craters & Freighters franchise.