What operating expenses are included in the estimated initial investment for a Craters & Freighters franchise?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- (10) This amount includes estimated operating expenses you should expect to incur during the first three months of operations. It includes royalty fees, advertising, payroll costs, deposits, fees for city, state and local business licenses, business entity organization expenses, other prepaid expenses, accounting and professional fees, real estate leasing costs that may be payable during the first three months of operation, and other operational expenses. These figures do not include any taxes or other permitting or licensing fees that you may pay. You should check with your local and state governmental agencies for any taxes and other permitting and licensing fees that may be assessed.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–18)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, the estimated initial investment includes an amount to cover operating expenses expected during the first three months of operations. This encompasses several key costs a new franchisee will likely face as they start their business.
Specifically, the estimate includes royalty fees, which are ongoing payments to Craters & Freighters for the use of their brand and systems. It also factors in advertising costs, essential for attracting initial customers. Payroll costs for employees, deposits for various services, and fees for city, state, and local business licenses are also included. Furthermore, the estimate covers business entity organization expenses, other prepaid expenses, accounting and professional fees, and real estate leasing costs that may be payable during the first three months.
It's important to note that these figures are estimates and do not include taxes or other permitting or licensing fees. Prospective Craters & Freighters franchisees should independently verify these costs with local and state governmental agencies to develop a more precise understanding of their initial investment requirements. The FDD advises that prospective franchisees review these figures carefully with a business advisor before making any decision to purchase a franchise.