Does the Craters & Freighters agreement specify if the 'course of conduct' involving misrepresentations must be intentional to trigger termination?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor cannot willfully engage in a course of conduct which includes any misrepresentations or deceptive or unlawful acts or practices in connection with offering and/or selling products and services to customers.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
Based on the 2025 Craters & Freighters Franchise Disclosure Document, the agreement states that the franchisor, Craters & Freighters, must not "willfully engage in a course of conduct which includes any misrepresentations or deceptive or unlawful acts or practices in connection with offering and/or selling products and services to customers." This clause explicitly requires that the misrepresentation or deceptive conduct be willful on the part of the franchisor to be a violation under the agreement.
This requirement of willfulness provides a degree of protection to Craters & Freighters franchisees. It means that unintentional errors or misstatements made by the franchisor in the course of business, while potentially still problematic, would not automatically constitute a breach of the franchise agreement unless they were made with intent. This could be relevant in legal disputes, as the burden of proof would be on the franchisee to demonstrate that the franchisor acted deliberately.
However, it is important to note that this clause applies specifically to the franchisor's conduct, not the franchisee's. The agreement outlines various obligations for the franchisee, and failure to meet those obligations could lead to termination regardless of intent. Prospective franchisees should carefully review all sections of the agreement to understand their responsibilities and the potential consequences of non-compliance.