What is the transfer fee for a Craters & Freighters franchise?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer | $15,000 | Prior to consummation of transfer. | Payable to us when you sell your Franchised Business, but no charge if the Franchised Business is transferred by you to a corporation or other legal entity which you control. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Craters & Freighters's 2025 Franchise Disclosure Document, a franchisee who sells their franchised business will pay a transfer fee of $15,000. This fee is payable to Craters & Freighters prior to the completion of the transfer.
However, the FDD specifies an exception: if the franchise is transferred to a corporation or other legal entity that the franchisee controls, then no transfer fee is charged. This provides an avenue for franchisees to restructure their business for estate planning or tax purposes without incurring this fee.
Transfer fees are a common component of franchise agreements. They compensate the franchisor for the administrative costs and efforts involved in approving a new franchisee and transferring the rights and obligations of the franchise agreement. The $15,000 fee charged by Craters & Freighters should be considered in the financial planning for the eventual sale of the franchise.