Will Craters & Freighters establish another franchisee within a Craters & Freighters franchisee's territory?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
We will not establish within your Territory another franchisee or company-owned outlet which may also use our trademarks;
- (2) to use our trademarks and system to sell any products or services similar to those which you will sell, through any alternate channels of distribution within or outside of your Territory, including to national accounts. This includes, but is not limited to, other channels of distribution such as television, mail order, catalog sales, wholesale to unrelated retail outlets, or over the Internet. We exclusively reserve alternative channels of distribution such as the Internet, catalog sales, telemarketing or other direct marketing, as channels of distribution for us. We are not required to compensate you if we solicit or accept orders from your Territory. You may not independently use alternative channels of distribution to make sales within or outside your Territory without our prior written approval;
- (3) to use and license the use of other proprietary and non-proprietary marks or methods which are not the same as or confusingly similar to our trademarks, whether in alternative channels of distribution or in the operation of a business offering shipping, packaging, crating, receiving and delivery, storage, transportation, moving, logistics, blanket wrap, and freight forwarding services and products, at any location, including within the Territory, which may be similar to or different from the business operated by you;
- (4) to purchase or be purchased by, or merge or combine with, any business, including a business that competes directly with your Franchised Business, wherever located, so long as that business does not operate under the same or similar trademarks or service marks as the Marks (as such term is defined below);
Source: Item 12 — TERRITORY (FDD pages 29–32)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, Craters & Freighters will not establish another franchisee or company-owned outlet within a franchisee's territory that also uses their trademarks. However, Craters & Freighters retains several rights that could impact a franchisee's business within their territory.
Craters & Freighters reserves the right to operate or franchise businesses outside of a franchisee's territory, regardless of proximity. They can also use their trademarks and system to sell similar products or services through alternate channels of distribution, such as the Internet or catalog sales, both within and outside the franchisee's territory. Craters & Freighters is not obligated to compensate franchisees if they solicit or accept orders from the franchisee's territory through these alternative channels.
Furthermore, Craters & Freighters can use and license other proprietary marks that are not confusingly similar to their trademarks, even within a franchisee's territory. They can also acquire or merge with any business, including competitors, as long as the business does not operate under the same trademarks as Craters & Freighters. These stipulations mean that while Craters & Freighters will not directly franchise another Craters & Freighters business in your territory, they retain significant latitude to operate competing or similar services through other channels and brands.