What is the required notice period before Craters & Freighters can increase the Technology Fee?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Individual Advertising Expense | Greater of (a) $6,000, or (b) one percent (1%) of your Adjusted Gross Sales for the prior calendar year. In either case, this amount will not exceed $18,000. | As incurred. | Each year, you must spend this amount on advertising and promotion of your Franchised Business in your Territory. You must submit annual reports to us reflecting advertising expenditures, which must be utilized only for marketing, promotions, and advertising of the Franchised Business. We reserve the right to require you to pay the amount of the Individual Advertising Expense to a designated or approved supplier of ours. |
| Technology Fee | Currently $500 per month. We reserve the right to increase this amount upon 30 days written notice to you. However, this amount will not exceed $750 per month. | Same as Royalty Fee. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, Craters & Freighters reserves the right to increase the Technology Fee, but must provide franchisees with 30 days written notice before doing so. The Technology Fee is currently $500 per month.
The Technology Fee covers software subscriptions, including proprietary software, up to seven email accounts, Geosite domain registration, other technology enhancements, maintenance, and support. If a franchisee requires more than seven email accounts, the Technology Fee will increase by Craters & Freighters' current rate of $15 per month per additional email account.
It's important to note that while Craters & Freighters can increase the Technology Fee, the FDD states that the fee will not exceed $750 per month. This provides a limit to how much the fee can increase. As a prospective franchisee, it would be prudent to understand the circumstances under which the Technology Fee might be increased and how often such increases have occurred in the past.