When is the Technology Fee due for a Craters & Freighters franchise?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Individual Advertising Expense | Greater of (a) $6,000, or (b) one percent (1%) of your Adjusted Gross Sales for the prior calendar year. In either case, this amount will not exceed $18,000. | As incurred. | Each year, you must spend this amount on advertising and promotion of your Franchised Business in your Territory. You must submit annual reports to us reflecting advertising expenditures, which must be utilized only for marketing, promotions, and advertising of the Franchised Business. We reserve the right to require you to pay the amount of the Individual Advertising Expense to a designated or approved supplier of ours. |
| Technology Fee | Currently $500 per month. We reserve the right to increase this amount upon 30 days written notice to you. However, this amount will not exceed $750 per month. | Same as Royalty Fee. | This fee relates to software subscription(s) (including the subscription for the Proprietary Software), up to seven (7) email accounts established for the Franchised Business, Geosite domain registration, other technology enhancements, and maintenance and support of the same provided by us or our designee(s). In the event you ask us to establish more than seven (7) email accounts for your Franchised Business, your Technology Fee will increase based on our current rate for establishing an email account, which is currently $15 per month per email account. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the Technology Fee is due at the same time as the Royalty Fee. The Technology Fee is currently $500 per month, but Craters & Freighters retains the right to increase this amount with 30 days written notice, although it will not exceed $750 per month.
The Technology Fee covers software subscriptions, including the Proprietary Software, up to seven email accounts for the franchise, Geosite domain registration, and other technology enhancements, as well as maintenance and support. If a franchisee requires more than seven email accounts, the Technology Fee will increase by the current rate of $15 per month per additional email account.
For a prospective Craters & Freighters franchisee, it is important to budget for this monthly Technology Fee, understanding that it can increase over time, but will not exceed $750 per month. Additionally, franchisees should factor in the cost of additional email accounts if they require more than the included seven. This fee is in addition to the Royalty Fee, and both are due at the same time, so franchisees should ensure they have sufficient cash flow to cover these ongoing technology-related expenses.