What is the minimum monthly royalty that a Craters & Freighters franchisee must pay?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
ATTACHMENTS:
- A. Territory, Initial Franchise Fee, and Premises
- B. Minimum Performance Standards and Minimum Monthly Royalty Fees
- C. EFT Authorization Form
- D. Form of Collateral Assignment of Lease and Addendum
- E. Owner's Guaranty & Assumption of Franchisee's Obligations
- F. Confidentiality and Non-Competition Agreement
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters FDD, the specifics of the minimum monthly royalty fees are detailed in Attachment B of the Franchise Agreement, titled "Minimum Performance Standards and Minimum Monthly Royalty Fees."
Attachment B, as referenced in Item 22, contains critical details regarding the minimum performance standards that a franchisee must meet. These standards are influenced by factors such as population within the territory, demographic and economic conditions, competition, market penetration, and the growth rate of other Craters & Freighters franchises. The franchisor determines these factors.
Prospective franchisees should carefully review Attachment B of the Franchise Agreement and discuss these minimum performance standards and royalty fees with Craters & Freighters to fully understand the financial obligations and performance expectations. Understanding these standards is crucial for assessing the potential profitability and sustainability of the franchise.