Is Craters & Freighters allowed to purchase or merge with a business that operates under the same trademarks?

According to Craters & Freighters's 2025 Franchise Disclosure Document, the company is permitted to purchase, be purchased by, or merge with any business, even one that directly competes with a franchisee's Craters & Freighters business. However, this is conditional. The business Craters & Freighters purchases or merges with cannot operate under the same or similar trademarks or service marks as Craters & Freighters.

This condition protects franchisees from direct brand confusion in the marketplace. If Craters & Freighters were to merge with a competitor using an identical brand, it could undermine the established brand recognition that franchisees rely upon. This restriction ensures that the Craters & Freighters brand remains distinct, even if the company expands through acquisitions or mergers.

This policy is fairly standard in franchising. Franchisors commonly reserve the right to grow their business through various means, including acquisitions. However, they also recognize the need to protect the brand identity that franchisees have invested in. The stipulation that any acquired or merged business must operate under a different trademark is a reasonable compromise that allows Craters & Freighters to expand while minimizing potential conflicts with its franchisees.