table_specific

What is the minimum monthly royalty fee for a Craters & Freighters franchise during years 4 through 15 of operation?

Craters_Freighters Franchise · 2025 FDD

Answer 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 the 2025 Craters & Freighters Franchise Disclosure Document, the minimum monthly royalty fee for a franchise during years 4 through 15 of operation is $4,167. This fee is part of a tiered structure that also includes minimum performance standards, which a franchisee must meet to avoid potential modifications to their territory.

This means that a Craters & Freighters franchisee must pay at least $4,167 each month in royalty fees to the franchisor during years 4 through 15. This amount is due regardless of actual sales revenue, provided the franchisee meets the minimum performance standard of $1,000,000 in annual sales. If the franchisee fails to meet the minimum performance standards, Craters & Freighters has the right to reduce the size of, or otherwise modify, the franchisee's territory.

It is important for prospective franchisees to understand that these minimums are not guarantees of success but rather thresholds. Meeting these minimums does not ensure sufficient market penetration or profitability. The royalty fee is in addition to other fees, such as the Marketing Fund Contribution, which is a percentage of adjusted gross sales. Franchisees should carefully consider their ability to meet these financial obligations before investing in a Craters & Freighters franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.