What are the payment terms for Craters & Freighters franchisee balances converted to a note receivable?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
31, 2024 and 2023, respectively.
At the Company's discretion, unpaid franchisee balances may be converted to a note receivable with payment terms between twenty-four and thirty-six months, accruing interest at six percent. As of December 31, 2024, there was $16,991 in outstanding notes receivable from franchisees relating to unpaid balances, of which $11,662 is due within one-year and $5,329 is due in 12-24 months. As of December 31, 2023, there were no Franchisee accounts with past due balances converted to notes receivable. Default on notes receivable will result in a termination of the related franchise agreements b
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, at the company's discretion, unpaid franchisee balances may be converted into a note receivable. These notes have payment terms that range between 24 and 36 months. The notes accrue interest at a rate of 6%.
As of December 31, 2024, Craters & Freighters had $16,991 in outstanding notes receivable from franchisees. Of this amount, $11,662 is due within one year, and $5,329 is due in 12-24 months.
It is important to note that if a franchisee defaults on these notes receivable, Craters & Freighters will terminate the franchise agreement. Prospective franchisees should consider these terms carefully, as failure to meet the payment schedule could result in the loss of their franchise.