What are some of the requirements for Craters & Freighters franchisees to be eligible for royalty rebates?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
ble deferred costs related to obtaining or fulfilling contracts as of December 31, 2023 and 2022.
Franchisees are eligible to participate in various royalty rebate programs. The rebate programs operate on an annual basis and each rebate is distributed to franchisee within 90 days following the year-end if the franchisee has met all eligibility requirements, as defined. Requirements include timely payment of royalties and submission of all reporting requirements as outlined in the underlying franchise agreement. The Company estimates royalty rebates payable totaling approximately $981,420 and $1,049,000 for the years e
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, franchisees may be eligible for royalty rebates if they meet certain requirements. These rebate programs operate on an annual basis. If a franchisee meets all the eligibility requirements, the rebate is distributed within 90 days following the year-end.
To be eligible for these rebates, Craters & Freighters franchisees must make timely royalty payments. Additionally, franchisees must submit all required reports as outlined in the franchise agreement. Meeting these requirements ensures that franchisees can participate in the royalty rebate programs offered by Craters & Freighters.
For the years ending December 31, 2023, and December 31, 2022, Craters & Freighters estimated royalty rebates payable totaling approximately $981,420 and $1,049,000, respectively. These royalty rebates are accounted for as "accounts payable" on the company's financial statements.