Does Craters & Freighters have control over the day-to-day managerial operations of the Franchised Business?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
ndors, and Related Topics. Franchisor will use commercially 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 Craters & Freighters' 2025 Franchise Disclosure Document, Craters & Freighters asserts that it does not intend to control the day-to-day operations of a franchisee's business. While Craters & Freighters provides training, support, and guidance, it states that this is to protect the brand and assist the franchisee, not to control their decisions or daily operations. The franchisee retains sole responsibility for employment-related matters, including hiring, wages, training, and termination of employees. However, franchisees must conduct business in strict accordance with the standards, operating procedures, and rules set forth in the franchise agreement and operations manuals.
Despite the franchisee's control over day-to-day operations, Craters & Freighters maintains the right to modify the System, and franchisees must comply with these changes, potentially incurring expenditures up to $10,000 during the term of the agreement. Franchisees are also responsible for all employment decisions and must comply with all applicable hiring laws. To protect the brand's reputation, franchisees must adhere to the System Standards and make the Craters & Freighters logo the primary focus of identification on promotional materials.
The franchise agreement emphasizes that the franchisee is in control of their Franchised Business and is responsible for its day-to-day operation. However, failure to comply with System Standards constitutes a material default under the agreement. This balance allows franchisees operational autonomy while ensuring brand consistency and adherence to Craters & Freighters' standards.
In practice, this means a Craters & Freighters franchisee has significant freedom in managing their business, including staffing and local marketing strategies, but must still operate within the framework established by the franchisor. This framework includes using approved software, following operational guidelines, and maintaining brand standards, all of which are designed to ensure a consistent customer experience and protect the Craters & Freighters brand.