Can Craters & Freighters contact a franchisee's suppliers 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 suppliers even after the termination of the franchise agreement. Craters & Freighters owns all records related to the franchisee's business, including customer and supplier information. This ownership extends to databases containing names, addresses, phone numbers, email addresses, and customer purchase records.
Craters & Freighters can use or transfer these records in any way they choose, both during the franchise term and after termination, expiration, repurchase, or transfer. This means that after a franchise agreement ends, Craters & Freighters is free to utilize the franchisee's supplier information for any purpose.
Specifically, Craters & Freighters may contact a franchisee's suppliers for quality control, market research, or any other purpose they deem appropriate. This clause in the franchise agreement gives Craters & Freighters significant control over the franchisee's business relationships, even after the franchisee is no longer part of the Craters & Freighters system. Prospective franchisees should consider the implications of this clause, as it could impact their ability to maintain relationships with suppliers should they leave the Craters & Freighters franchise system.