Under what conditions can Craters & Freighters increase the Technology Fee?

Question

Accepted Answer

| 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)

Under what conditions can Craters & Freighters increase the Technology Fee?

Answer from 2025 FDD Document

What This Means (2025 FDD)

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.