What is the deadline after the execution of the Craters & Freighters agreement for the franchisee to open the franchised business to the public, after which the franchisor can terminate the agreement without notice?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- 19.1 Non-curable Breaches. Franchisor will have the right to terminate this Agreement without prior notice to Franchisee upon the occurrence of any of the following events at any time during this Agreement, each of which will be deemed an incurable breach of this Agreement:
- 19.1.1 Failure or Refusal to Open. Franchisee fails or refuses to open the Franchised Business to the public within ninety (90) days after execution of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, a franchisee must open their Craters & Freighters business to the public within 90 days of signing the Franchise Agreement. If the franchisee fails to do so, Craters & Freighters has the right to terminate the agreement without any prior notice.
This requirement is considered a non-curable breach of the agreement, meaning the franchisee cannot take any action to remedy the failure to open on time and prevent termination. This underscores the importance of thorough preparation and planning before signing the Franchise Agreement to ensure the franchisee can meet this critical deadline.
This type of clause is relatively standard in franchising, as franchisors need franchisees to become operational promptly to start building brand presence and generating revenue. Franchisees should confirm that their site selection, build-out, staffing, and training schedules all align with this 90-day opening requirement to avoid the risk of immediate termination and loss of their initial investment.