What is Craters & Freighters disclaiming regarding warranties for 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 clarifies that their approval of a franchisee's lease for their business premises does not constitute any guarantee or warranty regarding the potential success or profitability of the franchise at that location. This means that while Craters & Freighters must approve the lease, this approval is simply an indication that the lease terms meet the company's established criteria at that time.
This disclaimer protects Craters & Freighters from any claims that their lease approval implies a promise of financial success. The franchisee bears the ultimate responsibility for the performance of their specific Craters & Freighters location.
Prospective franchisees should carefully consider this disclaimer and conduct their own thorough due diligence regarding the suitability of the chosen location. This includes assessing market conditions, local competition, and other factors that could impact the profitability of the Craters & Freighters business. It is important to remember that Craters & Freighters's lease approval is not a substitute for sound business judgment and independent analysis.