How is the Supplemental Territory Fee for a Craters & Freighters franchise calculated?
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 Craters & Freighters' 2025 Franchise Disclosure Document, the Supplemental Territory Fee is part of the initial franchise fee and is based on the population of the territory. 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 in addition to the base franchise fee of $45,000.
This means that the more populated the territory a franchisee purchases, the higher the initial investment will be due to the Supplemental Territory Fee. Prospective franchisees should carefully consider the population of their desired territory and factor this fee into their financial planning. It also highlights the importance of understanding the demographic and economic factors within the territory, as a larger population does not automatically guarantee success but does increase the initial cost.