Craters & Freighters Franchise Cost, Revenue & Review 2026
- Investment
- $207K – $390K
- Disclosed sales
- not disclosed
- SBA charge-off
- Under 10 loans (8)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Craters & Freighters is a specialty shipping and crating franchise handling fragile, oversized, and high-value items. Franchisees run local centers, building custom crates and managing packing, freight, and logistics for businesses and individuals.
FranchiseVerdict summary · 2026
A Craters & Freighters franchise requires a total initial investment of $207K – $390K, including a $30K – $40K franchise fee and an ongoing 5.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored4 of 5 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $207K – $390K
- 54th pct Business Serv…
- Avg gross sales
- N/A
- Royalty
- 5.0%
- 5th pct Business Serv…
- Units
- 65
- 41st pct Business Serv…
- SBA charge-off
- N/A
Quick verdict · Business Services · color = vs category peers
Green = favorable by >10% vs Business Services median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $207K – $390K including a $30K franchise fee, 5.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict A (Strongest tier), verdict score 73/100 (higher is better).
- GROWTHNegative: net -1 franchised outlets in the latest year (0 opened, 1 closed) (Item 20).
- DATAThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Craters & Freighters Franchise Company
- CEO title
- Chief Executive Officer
- Matthew Schmitz
- Incorporated in
- Colorado
- HQ
- 331 Corporate Circle, Suite J, Golden, Colorado 80401
- Auditor
- Wipfli LLP
- Audited financials
- Franchisor revenue
- $6.7M
- vs $5.9M prior year
Affiliated brands
- We developed a national account program through a former affiliate
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Matthew Schmitz
- Headquarters
- Colorado
- Founded
- 1991
- FDD year
- 2026
- States available
- 31
Can you afford it, and what does the money buy?
Entry cost runs 125% above the typical business services franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown13 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $35K | $45K | |
| Travel | $3K | $5K | |
| Leasehold Improvements | $5K | $15K | |
| Warehouse Tools & Equipment (manual & powered tools, material handling equipment) | $40K | $75K | |
| Warehouse Materials (lumber, plywood, hardware, foam, packing supplies) | $15K | $25K | |
| Office Furniture, Fixtures & Equipment | $5K | $10K | |
| Monthly Rent | $5K | $15K | |
| Lease Security Deposit | $5K | $30K | |
| Vehicle Lease/Purchase | $30K | $65K | |
| Organizational Expenses | $3K | $5K | |
| Insurance | $20K | $35K | |
| Miscellaneous Expense | $2K | $5K | |
| Additional Funds for First Three Months | $40K | $60K | |
| Total initial investment | $207K | $390K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $207K – $390K
- Middle of category vs category
- Liquid capital req'd
- $40K – $60K
- Middle of category vs category
- Franchise fee
- $30K – $40K
- Top 40% of category vs category
- Royalty
- 5.0%
- Set by a formula · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $500 |
| Transfer fee | $15K |
| Renewal fee | $3K |
| Inventory (initial) | $15K – $25K |
| Total fee load | 6.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Craters & Freighters makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Craters & Freighters unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 6.0% — below the Business Services median of 9.0%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System roughly stable (0.0% 3-year CAGR) with 65 units.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Business Services medians
How Craters & Freighters Compares
Category median of published Business Services brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 65
- Opened
- 0
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 1.5%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
- Net growth (3-yr)
- +0.0%
- Net unit change over 3 years
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 9
- Reacquired
- 1
- Franchisor bought back
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 3
- Franchisor's next-year forecast
- Transfer rate
- 1.6%
- Owners selling to other franchisees
- Ceased ops
- 1.6%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 31 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
31
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 8 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 8
- Loan volume
- $4.1M
- Median loan
- $301K
- 50th percentile
- Charge-off rate
- Under 10 loans (8)
- Insufficient SBA coverage: 8 loans, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (8)
- 5-yr charge-off
- Under 10 loans (8)
- Loans approved 2021+
- Active lenders
- 8
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Craters & Freighters presents meaningful caution risk due to complete lack of financial transparency, stagnant unit base, and undefined royalty minimums that could strain cash flow.
Litigation (Item 3)
Subject: the franchisor is a named party (plaintiff).
No Item 3 litigation disclosed. Item 13 discloses a long-running trademark infringement case (franchisor as plaintiff) against Daisychain Enterprises/Benz defendants over unauthorized use of "Freight & Crate"/"Craters & Freighters" marks, still active as of FDD issuance.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Wipfli LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 21 references audited financial statements as of Dec 31, 2023/2022/2021, but only the UNAUDITED balance sheet and P&L as of March 31, 2024 (Exhibit E) are present in the extracted text. Figures shown are from that unaudited Q1 2024 statement: Total Assets $8,205,597.90; Total Liabilities $522,245.94; Equity (net worth) $7,683,351.96; Jan-Mar 2024 Income $1,139,243.03; Net Income $540,957.16. These statements are unaudited and contain no footnotes. No CPA firm/auditor name appears in the extracted text.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 73 / 100 verdict
- 01MINORNo Item 19 financial performance disclosure (average revenue and net income not provided) prevents ROI validation
- 02MEDStagnant or unknown unit growth with only 64 locations suggests limited brand expansion and market traction
- 03MINOR15-year term is lengthy and locks franchisee into relationship without demonstrated unit economics
- 04MEDMinimum Monthly Royalty Fee structure not disclosed—actual royalty burden unclear and potentially burdensome in slow months
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 15 years |
|---|---|
| Renewal term | 15 years |
| Allowed renewalsℹ | 1 |
| Territory type | Exclusive territory |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory population | 1,000,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 11 |
| Mandatory arbitration | Yes |
| Arbitration location | Denver, Colorado |
| Jury trial waiver | Yes |
| Governing law | Colorado |
| Litigation count | 0 |
View Item 3 litigation summary
No Item 3 litigation disclosed. Item 13 discloses a long-running trademark infringement case (franchisor as plaintiff) against Daisychain Enterprises/Benz defendants over unauthorized use of "Freight & Crate"/"Craters & Freighters" marks, still active as of FDD issuance.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 44 hrs
- Training location
- Golden, Colorado, and/or one or more franchised locations in Colorado
- Ongoing training
- Required
- Time to open
- 3 mo
- From signing to launch
- Site selection
- franchisee, subject to franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Proprietary Program
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Proprietary Program
Item 20 · call current owners
Franchisee Contacts
55 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Craters & Freighters franchise?
The total investment to open a Craters & Freighters franchise ranges from $207K – $390K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Craters & Freighters franchise owners earn?
Craters & Freighters makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Craters & Freighters?
Craters & Freighters is franchised by Craters & Freighters Franchise Company. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Craters & Freighters FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Craters & Freighters FDD and qualifies whose outlets they describe.
What is Craters & Freighters's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Craters & Freighters (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Craters & Freighters franchise locations are there?
As of their most recent FDD filing, Craters & Freighters has 65 total units in the United States, including 64 franchised units and 1 company-owned units.
Is Craters & Freighters a good franchise to buy?
FranchiseVerdict rates Craters & Freighters as a A-grade franchise with a verdict score of 73 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.