Craters & Freighters Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$207,000 - $390,000
Franchise Fee
$30,000
Total US Locations
65
Business Summary
Craters & Freighters operates centers that provide a wide range of crating, packaging, shipping, receiving, delivery, storage, transportation, logistics, and freight forwarding services and products for both companies and individuals. The business focuses on creating specialized crating and packaging solutions to ensure products are delivered safely and on time.
Corporate History
Craters & Freighters Franchise Company was founded and began franchising on September 23, 1991, as a Colorado corporation. Since its inception, the company has consistently operated in the business of offering crating, packaging, shipping, and logistics services, and has not diversified into other lines of business or offered different types of franchises. Craters & Freighters has no parent or predecessor companies. It has two affiliates, Craters & Freighters Franchise Company International (formed in 2013, planning to offer international franchises) and Craters & Freighters Platinum, Inc. dba Craters & Freighters Global Logistics (formed in 2014, administers the national accounts program).
Financial Overview
Investment Range
$207,000 - $390,000
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$45,000
Royalty %
5%
Marketing %
1%
Equipment Costs (Low)
$80,000
Equipment Costs (High)
$165,000
Working Capital
$50,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Craters & Freighters appears financially stable, reporting net income in the last three fiscal years ($1,355,336 in 2024, $2,633,230 in 2023, and $2,437,747 in 2022). The company's balance sheets indicate healthy current assets exceeding current liabilities. Auditors have not noted any going concern issues or significant financial difficulties.
Financing Details
Craters & Freighters does not offer any direct or indirect financing to its franchisees and does not guarantee any franchisee's notes, leases, or obligations. Franchisees are responsible for securing their own financing through independent third parties.
Performance Metrics
Total US Locations
65
Franchised Units
65
Corporate Units
0
Avg Square Footage
5,000
Franchising Since
1991
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
Craters & Freighters has an ongoing litigation case filed in December 2016 in the United States District Court for the District of Colorado. This lawsuit is against Kathy Benz, Fred R. Benz, Tyler F. Benz, Steve Barnard, and a Colorado corporation named Craters & Freighters. The company alleges civil conspiracy, false designation of origin, violation of the Lanham Act, violation of the Colorado Consumer Protection Act, unfair competition, and common law trademark and trade name infringement. These claims arose because the defendants were allegedly using names similar to the Craters & Freighters marks and violating a prior permanent injunction. Tyler Benz has settled out of court, and Steve Barnard and the Colorado corporation were dismissed without prejudice, meaning Craters & Freighters can refile against them. Kathy Benz and Fred R. Benz have evaded service, and the case remains active as of the FDD's issuance date.
Bankruptcy History
Craters & Freighters has no bankruptcy history to report in Item 4 of its FDD.
Agreement Terms
Initial Term
15 years
Renewal Term
15 years
Renewal Conditions
To renew their franchise, Craters & Freighters franchisees must adhere to all terms and conditions of the current Franchise Agreement and Operations Manuals, including complying with all System Standards. They must provide written notice of their intent to renew between six and nine months before the initial term expires and timely satisfy all financial obligations to Craters & Freighters and its affiliates throughout the initial term. Franchisees must also prove they can maintain possession of their business premises for the renewal term or secure an approved substitute location meeting current standards. They must meet Craters & Freighters' then-current standards for new franchisees and achieve or exceed specified financial performance targets for renewing franchisees, such as Adjusted Gross Sales per capita and year-to-year growth. Finally, franchisees must sign a general release of all claims against Craters & Freighters and its affiliates, and pay a $5,000 successor fee.
Training & Support Program
Franchisor Assistance
Before opening, Craters & Freighters helps franchisees designate their territory and provides reasonable efforts to assist with site location. The company furnishes mandatory or suggested specifications for the premises, reviews construction plans, and offers an initial training program at its Colorado headquarters or franchised locations. Franchisees gain access to the Operations Manuals, receive promotional support for opening, and are granted rights to use the proprietary operating software. Craters & Freighters also sets up email accounts and a stand-alone website (Franchisee Geosite) for the business, and offers a three-day post-training on-site visit within 90 days of opening. After opening, ongoing support includes another free three-day on-site visit during the first year upon request. Craters & Freighters provides continuous support through telephone, regional and national conferences, additional site visits (for a fee), group calls, and online communications via an intranet. The company requires and provides periodic ongoing training for franchisees, their designated managers, and other managers regarding new methods, equipment, and procedures. Craters & Freighters administers the Marketing Fund, reviews marketing and advertising materials, maintains the Franchisee Geosite, and keeps franchisees informed about carrier tariffs and vendors. The company may also establish marketing cooperatives.
Initial Training Hours
84
Training Location
Golden, Colorado, and/or one or more franchised locations in Colorado.
Ongoing Support
After opening, Craters & Freighters provides ongoing support to its franchisees through various channels. This includes offering one additional three-day on-site visit during the first year of operation, upon request, at no charge. Beyond this, Craters & Freighters maintains support via telephone conversations, regional and national conferences, additional site visits (which may incur fees for travel and a daily per-diem), group conference calls, and online communications through a company-operated intranet. The franchisor also requires franchisees and their designated managers to attend periodic ongoing training sessions on new methods, techniques, equipment, services, and procedures, for which franchisees are responsible for travel and living expenses. Craters & Freighters administers the Marketing Fund, reviews and approves franchisee-proposed marketing materials, maintains the Franchisee Geosite, and provides information on carrier tariffs and vendors. The company may also establish marketing cooperatives.
Franchise Requirements
Ideal Candidate Profile
Craters & Freighters seeks individuals or entities whose owners will personally manage the franchised business on a full-time basis. If an owner is not present, an approved Designated Manager must oversee daily operations. Franchisees are solely responsible for all operational aspects and ensuring compliance with the system's terms, conditions, and standards. A key responsibility for the Craters & Freighters franchisee is to staff at least one Lead Salesperson to manage lead generation and daily customer sales. The company also offers a discount to qualified veterans, indicating a preference for this demographic.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
commercial
Owner Participation
Supervisory
Territory Type
exclusive
Territory Size Requirements
Craters & Freighters defines territories by counties, with the company having the exclusive right to determine which counties are included. They offer two types of territories: one with a population under 1,000,000 people and another with 1,000,000 or more people. If a franchisee requests and is approved for a territory with over 1,000,000 people, they must pay a supplemental territory fee of $0.015 per additional person. All population figures are based on the latest United States Census information. Failure to meet minimum performance standards may lead to a reduction or modification of the territory size.
Staffing Notes
Craters & Freighters franchisees are solely responsible for hiring, firing, training, setting hours, and supervising all their employees and independent contractors. The owner must personally participate in the direct management of the business on a full-time basis, unless an approved Designated Manager is hired to handle day-to-day operations. Regardless of whether a manager is engaged, the franchisee remains fully responsible for all aspects of the business's operation. Additionally, at least one staff member must be designated as the Lead Salesperson, responsible for lead generation and managing daily customer sales. This Lead Salesperson is required to participate in any sales training provided by Craters & Freighters at the franchisee's expense.