How is the supplemental territory fee for Craters & Freighters calculated?

According to Craters & Freighters' 2025 Franchise Disclosure Document, the franchise offers two types of territories: one with a population under 1,000,000 people and another with a population of 1,000,000 or more. If a prospective franchisee requests and Craters & Freighters approves a territory with a population exceeding 1,000,000 people, a Supplemental Territory Fee is required. This fee is calculated by multiplying $0.015 by the number of people exceeding the 1,000,000 population threshold in the territory.

For example, if a territory has a population of 1,500,000, the additional population is 500,000. The Supplemental Territory Fee would then be 500,000 multiplied by $0.015, resulting in a fee of $7,500. This fee is in addition to the standard franchise fee. Craters & Freighters bases all population determinations on the latest United States Census information available for the various territories.

This fee structure means that larger, more densely populated territories come at a higher initial cost to the franchisee. While a larger population base could translate to greater potential market reach and revenue, franchisees need to carefully weigh the potential benefits against the increased upfront investment of the Supplemental Territory Fee. Understanding the demographic and economic factors within the territory is crucial to assess whether the potential return justifies the additional cost.