What aspects of the Craters & Freighters franchise operation is the franchisee solely responsible for?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
r any purpose whatsoever, and nothing in any aspect of the System or the Marks in any way shifts any employee or employment related responsibility from Franchisee to Franchisor. Franchisee agrees to be solely responsible for all employment decisions and, in accordance with Section 6.10 of this Agreement, to comply with all state, federal, and local hiring laws and functions of the Franchised Business, including without limitation, those related to hiring, firing, training, wage and hour requirements, compensation, promotion, record-keeping, supervision, discipline, and workplace safety of employees, paid or unpaid, full or part-time.
- 6.12 Compliance with Lease. Franchisee must comply with both the Lease and any additional leasehold covenants and regulations of the building in which the Premises is located. In the event the landlord of the Premises terminates the Lease due to Franchisee's default of such Lease, such termination of the Lease will also constitute a material breach of this Agreement by Franchisee, so long as Franchisor verifies Franchisee's alleged default(s) of such Lease.
- 6.13 Compliance with System Standards. To protect the reputation and goodwill of Franchisor and the System, and to maintain uniform standards of operation under the Marks, Franchisee will conduct the Franchised Business in strict accordance with the specifications, standards, operating procedures, and rules set forth in this Agreement, the Operations Manuals, and otherwise established and communicated by Franchisor (collectively the "System Standards"). Franchisee acknowledges the System Standards are intended to protect Franchisor's standards, systems, names, Marks, Confidential Information, and Trade Secrets (including but not limited to the Proprietary Software) and are not intended to control the day-to-day operation of Franchisee's Franchised Business. Franchisee further acknowledges and agrees that Franchisee's Franchised Business will be under the control of the Franchisee at all times and that Franchisee will be solely responsible for the day-to-day operation of the business. Any failure or refusal by Franchisee to comply with the System Standards will be a material default by Franchisee under this Agreement.
- 6.14 Display of Logo.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 35–36)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, franchisees bear sole responsibility for various aspects of their business operations. Specifically, franchisees are in charge of all employment decisions, ensuring compliance with all state, federal, and local hiring laws. This encompasses a wide range of functions, including hiring, firing, training, setting wages and hours, determining compensation, managing promotions, maintaining records, providing supervision, implementing disciplinary actions, and ensuring workplace safety for all employees, whether paid or unpaid, full-time or part-time.
Furthermore, Craters & Freighters franchisees are responsible for complying with the terms of their lease agreements and any additional leasehold covenants or building regulations. Failure to comply with the lease, leading to its termination due to the franchisee's default, constitutes a material breach of the Franchise Agreement, provided the franchisor verifies the default. Franchisees also control the day-to-day operation of their business.
In addition, the franchisee is responsible for securing financing, obtaining necessary permits and licenses, complying with applicable laws and the lease, constructing improvements, decorating the premises, purchasing and installing fixtures, equipment, and signs, and purchasing an opening inventory of materials and supplies.