Can advertising promotions conducted by third parties inadvertently refer customers within a Craters & Freighters franchisee's territory to an outlet outside the territory?

According to the 2025 Craters & Freighters Franchise Disclosure Document, advertising promotions conducted by third parties at the request of Craters & Freighters may inadvertently refer customers residing or operating within a franchisee's territory to a Craters & Freighters outlet located outside of their territory. This means that a franchisee could potentially lose business to another Craters & Freighters location due to advertising efforts initiated by the franchisor.

This situation highlights a potential risk for franchisees, as they may face competition from other Craters & Freighters outlets even within their designated territory due to advertising campaigns they don't control. While franchisees are expected to focus their efforts on attracting customers within their territory, the franchisor's marketing strategies could undermine these efforts.

It is important for prospective franchisees to understand the implications of this clause and to discuss with Craters & Freighters what measures, if any, are in place to mitigate this risk. Understanding the franchisor's marketing strategy and how it impacts individual territories is crucial for making an informed investment decision. Franchisees should also inquire about the frequency and scope of these third-party advertising promotions to assess the potential impact on their business.