How often does a Craters & Freighters franchisee pay the Insurance Payment?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.7 Insurance Payment.
Each month throughout the duration of this Agreement, Franchisee must pay to Franchisor a payment ("Insurance Payment") relating to insurance secured by Franchisor on behalf of Franchisee as part of a system-wide program.
- 3.8 CPI Adjustments.
All fixed dollar amounts referenced in this Agreement may increase annually based on increases in the Consumer Price Index ("CPI") maintained by the U.S. Department of Labor (or such equivalent index as may be adopted in the future), or a comparable index Franchisor selects if the CPI is no longer published.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, franchisees are required to make an Insurance Payment to Craters & Freighters each month. This payment is for insurance that Craters & Freighters secures on behalf of the franchisee as part of a system-wide insurance program.
This monthly Insurance Payment is in addition to any other insurance policies the franchisee is required to procure and maintain. These include general liability, bodily injury and property damage, products liability, cargo, and packers legal liability insurance. Franchisees must also obtain any insurance required by state or federal law, such as workers' compensation and unemployment insurance.
The FDD also states that all fixed dollar amounts referenced in the agreement may increase annually based on increases in the Consumer Price Index (CPI). This means the Insurance Payment could potentially increase each year during the term of the Franchise Agreement.