Is the continued operation of a warehouse within the premises a fundamental requirement for operating a Craters & Freighters franchise?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
fundamental requirement for the operation of the Franchised Business. The physical appearance and location of the Premises must meet Franchisor's standards and specifications. The Premises should preferably have a loading dock and must have an overhead dock door that enables Franchisee to ship out and to receive large items of freight. If the dock door opens to ground level, Franchisee must have a forklift. Franchisor will use reasonable efforts to assist Franchisee to locate a suitable Premises for the Franchised Business. Franchisee acknowledges and agrees that Franchisor's approval of the Premises and any information regarding the Premises do not constitute a representation or warranty of any kind, express or implied, as to the suitability of a site for the Franchised Business or for any other purpose. Franchisor's approval of the Premises indicates only that Franchisor believes that a site falls within the acceptable criteria established by Franchisor as of that time. Franchisee acknowledges that application of criteria that have been effective with respect to other sites may not be predictive of potential for all sites and that, subsequent to Franchisor's approval of a Premises, demographic and/or economic factors included in or excluded from Franchisor's criteria could change (including the entry of competing businesses into the market of the Franchised Business), thereby altering the potential of a particular Premises. The uncertainty and instability of such criteria are beyond Franchisor's control and Franchisor will not be responsible for the failure of a Premises approved by Franchisor to meet expectations as to potential revenue or operational criteria. Franchisee further acknowledges and agrees that Franchisee's purchase of a franchise for the operation of a Franchised Business at the Premises is based on Franchisee's own independent investigation of the suitability of the Premises and that the final decision regarding the Premises will be made by Franchisee. The location of the Premises, once approved by Franchisor, will be set forth in Attachment A to this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, maintaining a warehouse within the franchise premises is a fundamental requirement. The FDD specifies that the physical appearance and location of the premises must meet Craters & Freighters' standards.
Specifically, the premises should ideally have a loading dock and must include an overhead dock door that allows for the shipping and receiving of large freight items. If the dock door opens to ground level, the franchisee must have a forklift on-site. Craters & Freighters offers assistance in locating a suitable premises, but the final decision rests with the franchisee based on their independent investigation of the site's suitability.
While Craters & Freighters provides approval for the premises, this approval does not constitute a warranty regarding the site's suitability or potential for success. The approval only indicates that the site meets the company's criteria at that time. Factors such as demographic and economic changes, including the entry of competitors, can affect the premises' potential, and Craters & Freighters is not responsible for failures to meet revenue or operational expectations after the premises has been approved.