Does Craters & Freighters disclaim any warranty as to the potential profits of the franchised business?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.2 Lease of Premises. Franchisee acknowledges that Franchisor must approve the lease, and any renewal of such lease (collectively, "Lease") for the Premises of the Franchised Business prior to executing such Lease. Franchisor's approval of such Lease cannot be unreasonably withheld or delayed. Franchisee agrees to use Franchisee's best efforts to incorporate into the Lease the terms and conditions set forth in the form of Collateral Assignment of Lease and Addendum, attached hereto as Attachment D to this Agreement. Franchisee acknowledges that Franchisor's approval of the Lease for the Premises does not constitute a guarantee or warranty by Franchisor, express or implied, of the successful operation or profitability of a Craters & Freighters Franchised Business operated at the Premises and indicates only that Franchisor believes the terms and conditions of the Lease fall within the acceptable criteria established by Franchisor as of that time. Franchisee agrees to deliver a copy of the executed Lease to Franchisor within fifteen (15) days after the execution of such Lease.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, Craters & Freighters does not guarantee or warrant the success or profitability of a franchise. Specifically, the approval of a lease for the premises by Craters & Freighters does not constitute a guarantee of the successful operation or profitability of the Craters & Freighters franchised business at that location. It only indicates that the terms and conditions of the lease meet the criteria established by Craters & Freighters at that time.
This disclaimer is a standard practice in franchising. Prospective franchisees should not interpret the franchisor's approval of a location or lease as a promise of financial success. The franchisee bears the responsibility for the success of their business.
Therefore, a potential Craters & Freighters franchisee should conduct their own independent market research and financial analysis to determine the viability of the business opportunity. They should not rely solely on the franchisor's approval of the lease or any other statements made by Craters & Freighters regarding potential profitability.