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FranchiseVerdict

How Much Does a Craters & Freighters Franchise Cost?

Data from the 2024 Franchise Disclosure Document

Investment Summary

Total Investment

$173K – $288K

Franchise Fee

$30K

Royalty

Greater of (a) 5% of total Adjusted Gross Sales or (b) the Minimum Monthly Royalty Fee

Ad Fund

1.0%

Cost Breakdown

Initial Franchise Fee

The initial franchise fee for Craters & Freighters is $30K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.

Total Investment Range

Opening a Craters & Freighters franchise requires a total investment of $173K – $288K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.

Working capital alone ranges from $40K to $60K.

Ongoing Costs

Beyond the initial investment, Craters & Freighters franchisees pay ongoing fees. The royalty structure is: Greater of (a) 5% of total Adjusted Gross Sales or (b) the Minimum Monthly Royalty Fee. The advertising or brand fund contribution is 1.0% of gross sales. There is also a technology fee of $250.

Net Worth & Liquid Capital Requirements

Craters & Freighters requires working capital of $40K – $60K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.

What Can You Earn?

Craters & Freighters does not disclose earnings data in Item 19 of its Franchise Disclosure Document. Not all franchisors choose to publish financial performance representations, though this is a data point many prospective franchisees consider important.

How Do Banks View Craters & Freighters?

SBA Loans Issued

8

Default Rate

25.0%

The SBA (Small Business Administration) tracks loan performance for franchise brands. Craters & Freighters has 8 SBA-backed loans on record. The default rate is 25.0%, which is near the franchise industry average. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.

Next Steps

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