What is the duration of the non-exclusive license granted to the Craters & Freighters franchisee?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.1 Grant. Subject to the terms and conditions of this Agreement, Franchisor grants to Franchisee a non-exclusive license to operate a Franchised Business at the Premises (as such term is defined below) using the System and the Marks for the Initial Term of this Agreement. Franchisee may not operate the Franchised Business at any site other than the Premises without Franchisor's prior written consent. Franchisee must use the Marks and System only in accordance with the terms and conditions 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, Craters & Freighters grants the franchisee a non-exclusive license to operate a franchised business using the Craters & Freighters system and marks for the initial term of the agreement.
This means that the franchisee's right to operate under the Craters & Freighters brand and system is limited to the length of the initial term specified in the franchise agreement. The franchisee can only operate at the premises approved by Craters & Freighters and must adhere to the terms and conditions outlined in the agreement.
It is important for a prospective franchisee to understand the length of the initial term, as this dictates how long they have the right to operate their Craters & Freighters franchise. The franchisee may have the option to renew for a Successor Term, but the initial grant is specifically for the Initial Term.