What is the minimum monthly royalty fee for Craters & Freighters in year 4?

According to Craters & Freighters's 2025 Franchise Disclosure Document, the minimum monthly royalty fee for year 4 is not predetermined. Instead, Craters & Freighters determines the Minimum Performance Standards and Minimum Monthly Royalty Fees for years 4-15 of the Franchise Agreement at the end of year 3. They will then provide an amendment to the Franchise Agreement.

Craters & Freighters bases its decision on factors such as population, demographic and economic factors, competition, market penetration, the growth rate of other Craters & Freighters Franchised Businesses, and other relevant factors. This means that the royalty fee can vary depending on the franchisee's specific circumstances and the performance of the overall Craters & Freighters network.

This approach allows Craters & Freighters to adjust royalty fees based on real-world performance and market conditions, which could benefit franchisees in some situations. However, it also introduces uncertainty, as franchisees will not know the exact royalty fee for years 4-15 until the end of year 3. A prospective franchisee should inquire about the typical range of adjustments and the factors that most heavily influence these royalty fee determinations. Understanding these factors can help a franchisee better anticipate future royalty obligations and plan accordingly.