Can Craters & Freighters acquire and convert businesses operated by competitors to the Craters & Freighters system?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right, among others:
(4) to purchase or be purchased by, or merge or combine with, any business, including a business that competes directly with your Franchised Business, wherever located, so long as that business does not operate under the same or similar trademarks or service marks as the Marks (as such term is defined below);
(5) to acquire and convert to the System operated by us any businesses offering shipping, packaging, crating, receiving and delivery, storage, transportation, moving, logistics, blanket wrap, and freight forwarding services and products, including such businesses operated by competitors or otherwise operated independently or as part of, or in association with, any other system or chain, whether franchised or corporately owned and whether located inside or outside of the Territory; and
Source: Item 12 — TERRITORY (FDD pages 29–32)
What This Means (2025 FDD)
According to Craters & Freighters's 2025 Franchise Disclosure Document, Craters & Freighters retains the right to acquire and convert businesses to the Craters & Freighters system. This includes businesses offering shipping, packaging, crating, receiving and delivery, storage, transportation, moving, logistics, blanket wrap, and freight forwarding services and products. These businesses may be operated by competitors, independently, or as part of another system or chain, whether franchised or corporately owned, and whether located inside or outside of a franchisee's territory.
This means that Craters & Freighters can directly compete with its own franchisees by acquiring existing businesses, even those that were previously competitors, and converting them into Craters & Freighters franchises or company-owned operations. This right is reserved by Craters & Freighters regardless of the location of these acquired businesses, meaning they could be within a franchisee's exclusive territory or outside of it.
Furthermore, Craters & Freighters also reserves the right to purchase or merge with any business, including those that directly compete with a franchisee's business, as long as the competing business does not operate under the same or similar trademarks as Craters & Freighters. This clause provides Craters & Freighters with significant flexibility in expanding its operations and market presence, potentially at the expense of individual franchisee territories and market share. A prospective franchisee should consider the implications of these reserved rights and how they might affect their business.