Under what condition is the Craters & Freighters transfer fee waived?
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' 2025 Franchise Disclosure Document, the standard transfer fee of $15,000 is waived under a specific condition. This fee is generally payable to Craters & Freighters when a franchisee sells their franchised business.
However, the FDD specifies that the transfer fee is not charged if the franchise is transferred to a corporation or other legal entity that the franchisee controls. This provides an avenue for franchisees to restructure their business ownership without incurring the $15,000 fee.
This condition is important for prospective franchisees to understand, as it offers flexibility in managing the ownership structure of their Craters & Freighters franchise. It allows for internal transfers within a franchisee's own entities without triggering the transfer fee, which could be beneficial for estate planning or tax purposes.