How is the Supplemental Territory Fee calculated for a Craters & Freighters franchise?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| 1. | TERRITORY | |
|---|---|---|
| Pursuant to Section 1.2 of this Agreement, the Territory is defined as follows: | ||
| The population in the Territory as of the Effective Date of this Agreement is: | ||
| 2. | INITIAL FRANCHISE FEE | |
| Pursuant to Section 3.1 of this Agreement, the Initial Franchise Fee is: | ||
| 1,000,000 people. | Thirty-Five Thousand Dollars ($35,000) for a Territory with a population of fewer than | |
| Forty-Five Thousand Dollars ($45,000) for a Territory with a population |
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, the initial franchise fee is dependent on the territory's population. For a territory with a population of fewer than 1,000,000 people, the initial franchise fee is $35,000. For a territory with a population of 1,000,000 people or more, the initial franchise fee is $45,000, plus a Supplemental Territory Fee.
The Supplemental Territory Fee is calculated by multiplying $0.015 by the population in the territory. For example, if a territory has a population of 2,000,000, the Supplemental Territory Fee would be $30,000 (2,000,000 x $0.015). This fee is added to the base franchise fee of $45,000 for territories with populations exceeding 1,000,000.
This fee structure means that franchisees in more densely populated areas will pay a higher initial franchise fee, reflecting the potentially larger customer base and market opportunity. Prospective franchisees should carefully consider the population of their desired territory and factor in the Supplemental Territory Fee when evaluating the overall cost of investing in a Craters & Freighters franchise.