Who has the exclusive right to determine the counties included in a Craters & Freighters franchisee's Territory?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 12: TERRITORY]
You will receive an exclusive territory ("Territory") in which to operate your Franchised Business. You are required to locate your Franchised Business within your Territory. Your Territory will be delineated by counties, and we have the exclusive right to determine the counties in your Territory. We offer two types of territories: one which will have a population under 1,000,000 people, and another which will have a population of 1,000,000 or more people. If you request, and we approve, a Territory with a population of more than 1,000,000 people, then you will be required to pay us a Supplemental Territory Fee equal to $0.015 per additional person in the Territory in addition to the Initial Franchise Fee of $45,000. All population
Source: Item 12 — TERRITORY (FDD pages 29–32)
What This Means (2025 FDD)
According to Craters & Freighters's 2025 Franchise Disclosure Document, Craters & Freighters retains the exclusive right to determine the counties included in a franchisee's territory. The FDD states that the territory will be delineated by counties, and Craters & Freighters has the exclusive right to determine those counties.
Craters & Freighters offers two types of territories: one with a population under 1,000,000 people and another with a population of 1,000,000 or more. If a franchisee requests and Craters & Freighters approves a territory with a population of more than 1,000,000 people, the franchisee must pay a Supplemental Territory Fee equal to $0.015 per additional person in the territory, in addition to the initial franchise fee of $45,000. All population determinations are based on the latest United States Census information available for the various territories. A franchisee will not be entitled to additional counties or an expansion of geographic boundaries if the population decreases in their territory.
This means that while a franchisee will have an exclusive territory, Craters & Freighters maintains control over the size and composition of that territory. A prospective franchisee should consider the implications of this control, especially regarding the potential for growth and the fees associated with larger territories. The franchisee is required to locate their Franchised Business within their Territory.