Does Craters & Freighters' approval of the lease constitute a guarantee of the franchised business's success or profitability?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that Franchisor's approval of the Lease for the Premises does not constitute a guarantee or warranty by Franchisor, express or implied, of the successful operation or profitability of a Craters & Freighters Franchised Business operated at the Premises and indicates only that Franchisor believes the terms and conditions of the Lease fall within the acceptable criteria established by Franchisor as of that time.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, Craters & Freighters' approval of a franchisee's lease for their business location does not constitute a guarantee or warranty of the business's success or profitability. While Craters & Freighters must approve the lease before it is executed and cannot unreasonably withhold or delay such approval, this approval only indicates that the lease terms fall within the criteria Craters & Freighters has established at that time.
This means that while Craters & Freighters reviews the lease to ensure it meets their standards, franchisees should not interpret this as an assurance of financial success. The responsibility for the business's performance rests solely with the franchisee.
Prospective franchisees should carefully consider all aspects of the business, including location, market conditions, and their own business acumen, rather than relying on the lease approval as a predictor of success. It is common practice in franchising for franchisors to have lease approval rights to maintain brand standards and protect their trademarks, but this is distinct from guaranteeing the franchisee's financial outcomes.