Are taxes or permitting fees included in the estimated operating expenses for a Craters & Freighters franchise?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- (10) This amount includes estimated operating expenses you should expect to incur during the first three months of operations. It includes royalty fees, advertising, payroll costs, deposits, fees for city, state and local business licenses, business entity organization expenses, other prepaid expenses, accounting and professional fees, real estate leasing costs that may be payable during the first three months of operation, and other operational expenses. These figures do not include any taxes or other permitting or licensing fees that you may pay. You should check with your local and state governmental agencies for any taxes and other permitting and licensing fees that may be assessed.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–18)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the estimated operating expenses for the first three months of operations do not include taxes or other permitting or licensing fees. The FDD specifies that the estimated operating expenses include royalty fees, advertising, payroll costs, deposits, fees for city, state and local business licenses, business entity organization expenses, other prepaid expenses, accounting and professional fees, real estate leasing costs, and other operational expenses.
As a prospective franchisee, it is important to note that you will need to budget separately for taxes, permits, and licenses beyond the initial estimates provided. Craters & Freighters recommends checking with local and state governmental agencies to determine what taxes, permits, and licensing fees may be assessed. This is a common practice in franchising, as these costs can vary significantly depending on the location of the franchise.
Therefore, when evaluating the financial feasibility of a Craters & Freighters franchise, it is crucial to conduct thorough research on local and state tax requirements and permitting fees. This will ensure a more accurate assessment of the total initial investment and ongoing operating costs.