Can Craters & Freighters contact a franchisee's service providers after termination of the franchise agreement?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
We own and have the right to inspect, copy and use all records with respect to the customers, suppliers, and other service providers of, and related in any way to your Franchised Business. This includes, without limitation, all databases (whether in print, electronic, or other form), including, among other things, all names, addresses, phone numbers, e-mail addresses, and customer purchase records. We may use or transfer the records in any way we wish, both before and after any termination, expiration, repurchase, transfer or otherwise. We may contact any or all of your customers, suppliers, and other service providers for quality control, market research, and such other purposes, as we deem appropriate, in our sole discretion.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 34–35)
What This Means (2025 FDD)
According to Craters & Freighters's 2025 Franchise Disclosure Document, Craters & Freighters retains the right to contact a franchisee's service providers even after the termination of the franchise agreement. Craters & Freighters owns all records pertaining to the franchisee's customers, suppliers, and other service providers. This includes databases containing names, addresses, phone numbers, email addresses, and customer purchase records.
Craters & Freighters has the right to use or transfer these records in any way they see fit, both before and after the termination, expiration, repurchase, or transfer of the franchise. This means that even after a franchisee leaves the Craters & Freighters system, Craters & Freighters can still utilize the data collected during the franchise term.
Furthermore, Craters & Freighters may contact any of the franchisee's customers, suppliers, and other service providers for purposes such as quality control and market research. This right is maintained at Craters & Freighters's sole discretion. This clause has significant implications for franchisees, as it allows Craters & Freighters to maintain relationships with key contacts developed by the franchisee, potentially impacting the franchisee's future business endeavors.