Craters & Freighters Franchise
Cost, fees, owner earnings, closure rate and litigation for a Craters & Freighters franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Craters & Freighters discloses little or no owner-earnings data (Item 19) — the franchisor won't put real profit in writing.
What their own earnings claim actually says
Franchisor explicitly declines to make any financial performance representations; directs franchisees to report unauthorized projections.
What a Craters & Freighters franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $35,000 | Item 5 — paid up front, before you open |
| Royalty | 5% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 1% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 6% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $207,000 – $390,000 | Item 7 — franchisor's own low/high estimate |
5% royalty (min. $1,667-$2,125/mo yr 2-3); 1% marketing fund; $500/mo technology fee; insurance variable; $6,000-$18,000 annual advertising minimum.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Craters & Freighters system size and owner turnover
| Total outlets | 65 |
| Ceased operations | 1 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 3 |
| Closure rate | 1.5% of outlets |
One closure (Rhode Island 2025); minimal terminations; stable 64-65 outlet system 2023-2025.
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Craters & Freighters worth it? — how it compares to 59 similar franchises
| Ongoing fees | 6% of sales | lower than most (median 7%) |
| Startup cost | from $207,000 | pricier than 67% of peers |
| Disclosure honesty | Grade F | less honest than most of the category |
| Closure rate | 1.5% of outlets | better than most (median 2.4%) |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every retail & business services franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Craters & Freighters
The franchisor's framing: Franchisor explicitly declines to make any financial performance representations; directs … We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
Craters & Freighters franchise — frequently asked
- How much does a Craters & Freighters franchise cost?
- The FDD lists a total initial investment of about $207,000–$390,000, including a $35,000 initial franchise fee.
- How much do Craters & Freighters franchise owners make?
- Craters & Freighters discloses little or no earnings data (Item 19) — meaning the franchisor won't put real owner profit in writing. That's a red flag worth questioning.
- What are the Craters & Freighters franchise fees?
- Craters & Freighters' FDD discloses a $35,000 initial franchise fee, a 5% royalty on gross sales, a 1% advertising-fund contribution, for roughly 6% of gross sales in recurring fees before rent, labor, or debt service. 5% royalty (min. $1,667-$2,125/mo yr 2-3); 1% marketing fund; $500/mo technology fee; insurance variable; $6,000-$18,000 annual advertising minimum.
- What is the Craters & Freighters franchise profit margin?
- Craters & Freighters discloses no Item 19 earnings representation, so no profit margin can be derived from the FDD at all. Any margin figure quoted elsewhere is an estimate, not a disclosure.
- What is the Craters & Freighters franchise failure rate?
- One closure (Rhode Island 2025); minimal terminations; stable 64-65 outlet system 2023-2025.
- How many Craters & Freighters locations are there?
- Craters & Freighters' FDD reports 65 total outlets, with 1 that ceased operations in the most recent reporting year and 3 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Craters & Freighters have complaints or lawsuits?
- Craters & Freighters discloses no material litigation in Item 3 of the filing we reviewed. That's a positive signal, though it covers only what the franchisor is required to report.
- Is a Craters & Freighters franchise worth it?
- It depends on the numbers, not the pitch. Craters & Freighters scores F on disclosure honesty, carries about 6% of sales in ongoing fees. Get the real owner take-home before you sign.
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Compare Craters & Freighters to similar franchises
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Source: MN CARDS 36056-202604-08 (Clean FDD 2026). FranchiseValidate is independent and not affiliated with Craters & Freighters or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.