Is the Craters & Freighters Supplemental Territory Fee refundable?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
If you request, and we approve, a Territory with a population of more than 1,000,000 people, then you will be required to pay us a supplemental territory fee ("Supplemental Territory Fee") of $0.015 per additional person in the Territory in addition to the Initial Franchise Fee. The Initial Franchise Fee and the Supplemental Territory Fee, if applicable, are due to us in a lump sum at the time you sign the Franchise Agreement and are non-refundable for any reason once paid.
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2025 FDD)
According to Craters & Freighters's 2025 Franchise Disclosure Document, the Supplemental Territory Fee is non-refundable. If a prospective franchisee requests and Craters & Freighters approves a territory with a population of more than 1,000,000 people, the franchisee must pay a Supplemental Territory Fee of $0.015 per additional person in the territory, in addition to the Initial Franchise Fee. This fee is paid in a lump sum when the Franchise Agreement is signed.
This means that once the Supplemental Territory Fee is paid, it will not be returned under any circumstances. This is a standard practice in franchising, as initial fees are typically used to cover the franchisor's costs associated with granting the franchise, such as training and support.
Prospective Craters & Freighters franchisees should carefully consider the size of the territory they request and the associated Supplemental Territory Fee, as this is a non-refundable expense. It is important to conduct thorough market research to ensure that the territory has the potential to generate sufficient revenue to justify the investment.