Under what conditions are Craters & Freighters franchisees eligible to participate in royalty rebate programs?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
ble deferred costs related to obtaining or fulfilling contracts as of December 31, 2023 and 2022.
Franchisees are eligible to participate in various royalty rebate programs. The rebate programs operate on an annual basis and each rebate is distributed to franchisee within 90 days following the year-end if the franchisee has met all eligibility requirements, as defined. Requirements include timely payment of royalties and submission of all reporting requirements as outlined in the underlying franchise agreement. The Company estimates royalty rebates payable totaling approximately $981,420 and $1,049,000 for the years e
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, franchisees can participate in royalty rebate programs if they meet specific eligibility requirements. These rebate programs operate on an annual basis. If a franchisee meets all the defined eligibility requirements, Craters & Freighters will distribute the rebate within 90 days following the year-end.
To be eligible for the royalty rebate, a Craters & Freighters franchisee must make timely royalty payments and submit all required reports as outlined in the franchise agreement. Meeting these requirements ensures that the franchisee is in good standing and compliant with the terms of the agreement, making them eligible for the financial benefit of the rebate.
For the years ending December 31, 2023, and December 31, 2022, Craters & Freighters estimates royalty rebates payable totaling approximately $981,420 and $1,049,000, respectively. These royalty rebates are accounted for as "accounts payable," indicating the company's obligation to distribute these funds to eligible franchisees. Prospective franchisees should carefully review the franchise agreement to fully understand the specific requirements and potential benefits of the royalty rebate programs.