Who has authority and control over the day-to-day operations of a Craters & Freighters franchised business?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
mercially reasonable efforts to keep Franchisee informed regarding information on carrier tariffs, vendors, and related topics.
- 5.15 Purpose of Training, Support and Guidance. Franchisee acknowledges and agrees that any training, support, guidance or tools Franchisor provides to Franchisee under this Agreement are for the purpose of protecting the Craters & Freighters brand and Marks and to assist Franchisee in the operation of the Franchised Business and not for the purpose of controlling or in any way intended to exercise or exert control over Franchisee's decisions or day-to-day operations of the Franchised Business, including Franchisee's sole responsibility for the hiring, wages and other compensation (including benefits), training, supervision and termination of Franchisee's employees and all other employment and employee related matters.
- 5.16 Modification of System. Franchisor will keep Franchisee informed regarding any changes in the System. Franchisor reserves the right to periodically change, improve, or further develop the System, or any part of the System, including but not limited to the Marks. Franchisee must promptly accept and comply with any change to the System and incur any expenditures as necessary to comply with the System; provided, however, such expenditures will not exceed an aggregate amount of Ten Thousand Dollars ($10,000) during the term of this Agreement. Franchise acknowledges that such expenditures are not limited or capped by Franchisor in any way.
6. OBLIGATIONS OF FRANCHISEE.
- 6.1 Personal Guaranty. Each of the owners of Franchisee must execute the Owner's Guaranty and Assumption of Obligations set forth in Attachment E to this Agreement, pursuant to which all obligations and duties of Franchisee are guaranteed by such individuals. Franchisee and each such owner of Franchisee represent that the entity ownership percentages set forth in Attachment E to this Agreement are true, complete, accurate, and not misleading.
- 6.2 Lease.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, the franchisee has control over the day-to-day operations of their franchised business. Craters & Freighters provides training, support, and guidance to protect the brand and assist in the business's operation, but this is not intended to control the franchisee's decisions or daily activities.
Specifically, the franchisee is responsible for all employment-related decisions, including hiring, firing, training, wage and hour requirements, compensation, promotion, record-keeping, supervision, discipline, and workplace safety. The franchisee must also comply with all state, federal, and local hiring laws.
While Craters & Freighters establishes System Standards to protect its brand and maintain uniform operations, these standards are not intended to control the franchisee's day-to-day operations. The franchisee is expected to manage the business while adhering to the standards outlined in the franchise agreement and operations manuals. The franchisee's failure to comply with the System Standards constitutes a breach of the agreement.