How must the Craters & Freighters Royalty Fee be paid?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
The Royalty Fee will be paid to Franchisor monthly via electronic funds transfer ("EFT") or other similar means (such as ACH or wire transfer) or as otherwise prescribed in the Operations Manuals. Regardless of the method of payment required by Franchisor, each Royalty Fee payment must be received by Franchisor on or before the twelfth (12th) day of the month. Franchisee agrees to comply with procedures specified by the Franchisor and/or perform such acts and deliver and execute such documents, including authorization for direct debits from the bank operating account of the Franchised Business, as may be necessary to assist in or accomplish payment by such method. Under this procedure, Franchisee will authorize Franchisor to initiate debit entries and/or credit correction entries to a designated checking or savings account for payments of fees and other amounts payable to Franchisor and any interest charged due thereon. In order to facilitate direct debits, the EFT Authorization is attached as Attachment C to this Agreement. It is Franchisee's responsibility to initiate electronic payments timely and accurately; any failure or refusal by Franchisee to make a timely and accurate payment of the Royalty Fee or any other fee or payment due and owing to Franchisor in accordance with this Agreement will grant Franchisor the right to use direct debit to fulfill Franchisee's obligation to collect such payment(s). Franchisor will provide Franchisee with written notice prior to collecting such payments through direct debit.
Franchisor reserves the right to collect the Royalty Fee more frequently (e.g., weekly) upon thirty (30) days' prior written notice to Franchisee.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the Royalty Fee must be paid monthly via electronic funds transfer (EFT) or other similar means, such as ACH or wire transfer, or as otherwise prescribed in the Operations Manuals. The Royalty Fee payment must be received by Craters & Freighters on or before the 12th day of the month.
The franchisee must comply with Craters & Freighters' procedures and execute documents, including authorization for direct debits from the bank operating account of the franchised business, to facilitate payment. The franchisee authorizes Craters & Freighters to initiate debit entries or credit correction entries to a designated checking or savings account for payments of fees and other amounts payable, including any interest charged. An EFT Authorization form is included as Attachment C to the Franchise Agreement.
It is the franchisee's responsibility to initiate electronic payments accurately and on time. Failure to make timely and accurate payments of the Royalty Fee or any other fee due to Craters & Freighters grants Craters & Freighters the right to use direct debit to fulfill the franchisee's payment obligation. However, Craters & Freighters will provide the franchisee with written notice before collecting payments through direct debit. Craters & Freighters also reserves the right to collect the Royalty Fee more frequently (e.g., weekly) upon thirty (30) days' prior written notice to the franchisee.