What acts and things must a Craters & Freighters franchisee do to protect the franchisor's interests?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
You must notify us within three days after you learn about another's use of language, a visual image, or a recording of any kind, that you perceive to be identical or substantially similar to one of our Copyrighted Works or use of our Confidential Information or Trade Secrets or if someone challenges your use of our Copyrighted Works, Confidential Information or Trade Secrets. We will take whatever action we deem appropriate, in our sole and absolute discretion, to protect our rights in and to the Copyrighted Works, Confidential Information or Trade Secrets, which may include payment of reasonable costs associated with the action. However, the Franchise Agreement does not require us to take affirmative action in response to any apparent infringement of or challenge to your use of any Copyrighted Works, Confidential Information or Trade Secrets or claim by any person of any rights in any Copyrighted Works, Confidential Information or Trade Secrets. You must not directly or indirectly contest our rights to any of our Copyrighted Works, Confidential Information or Trade Secrets. You may not communicate with anyone except us and our counsel with respect to any infringement, challenge or claim. We will have discretion to take action as we deem appropriate regarding any infringement, challenge or claim, and the sole right to control exclusively any litigation or other proceeding arising out of any infringement, challenge or claim under any Copyrighted Works, Confidential Information or Trade Secrets. You must sign any and all instruments and documents, give the assistance, and do acts and things that may, in the opinion of our counsel, be necessary to protect and maintain our interests in any litigation or proceeding or to protect and maintain our interests in the Copyrighted Works, Confidential Information or Trade Secrets.
No patents are material to us at this time. We do not have any pending patent applications that are material to the franchise.
We own and have the right to inspect, copy and use all records with respect to the customers, suppliers, and other service providers of, and related in any way to your Franchised Business. This includes, without limitation, all databases (whether in print, electronic, or other form), including, among other things, all names, addresses, phone numbers, e-mail addresses, and customer purchase records. We may use or transfer the records in any way we wish, both before and after any termination, expiration, repurchase, transfer or otherwise. We may contact any or all of your customers, suppliers, and other service providers for quality control, market research, and such other purposes, as we deem appropriate, in our sole discretion.
You must disclose to us all ideas, techniques and products concerning the development and operation of the Franchised Business you, your manager or your employees conceive or develop during the term of the Franchise Agreement. You must grant to us and agree to obtain from your owners, manager or employees a perpetual, non-exclusive and worldwide right to use these ideas, techniques and products concerning the development and operation of the Franchised Business that you, your manager or your employees conceive or develop during the term of the Franchise Agreement in all Craters & Freighters Franchised Businesses that you operate. We will have no obligation to make any lump sum or on-going payments to you with respect to any idea, concept, method, technique or product. You must agree that you will not use nor will you allow any other person or entity to use any of these ideas, techniques or products without obtaining our prior written approval.
ITEM 15 OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS
As noted in ITEM 11 of this Disclosure Document, you must complete the initial training program to our satisfaction prior to opening your Franchised Business. As owner(s) of your franchisee entity, you must personally participate in the direct management of your Franchised Business on a full-time basis, unless you engage a manager ("Designated Manager") whom we approve in writing to manage the day-to-day operations of your Franchised Business when you are not present. You are required to always inform us of the identity of
the Designated Manager.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 34–35)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, franchisees have several obligations to protect the franchisor's interests, particularly concerning proprietary information and intellectual property. Franchisees must notify Craters & Freighters within three days if they become aware of any potential infringement or unauthorized use of the company's copyrighted works, confidential information, or trade secrets. This includes instances where another party uses similar language or visual images, or if someone challenges the franchisee's use of these protected assets. Franchisees are also prohibited from contesting Craters & Freighters' rights to their copyrighted works, confidential information, or trade secrets.
Furthermore, franchisees must only communicate with Craters & Freighters and their counsel regarding any infringement, challenge, or claim related to these protected assets. Franchisees are required to sign documents and provide assistance as deemed necessary by Craters & Freighters' counsel to protect the company's interests in any litigation or proceeding. This ensures that Craters & Freighters maintains exclusive control over any legal actions related to their intellectual property.
Craters & Freighters also requires franchisees to maintain the confidentiality of its confidential information and trade secrets, adopting reasonable procedures to prevent unauthorized disclosure. All owners, officers, directors, shareholders, and partners of the franchisee entity must execute a confidentiality and non-competition agreement. Additionally, franchisees must disclose to Craters & Freighters any ideas, techniques, and products conceived or developed during the term of the Franchise Agreement related to the Franchised Business, granting Craters & Freighters a perpetual, non-exclusive, and worldwide right to use these innovations in all Craters & Freighters Franchised Businesses. Franchisees are prohibited from using or allowing others to use these ideas without prior written approval from Craters & Freighters.
These measures are typical in franchising to protect the brand's intellectual property and maintain consistency across the franchise system. By adhering to these requirements, franchisees help safeguard Craters & Freighters' competitive advantage and ensure the continued value of the franchise system.