What factors are considered when determining the Craters & Freighters Minimum Performance Standards?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must meet the minimum performance standards ("Minimum Performance Standards") set forth in Attachment B to this Agreement. The Minimum Performance Standards are based on population (which determination should be made based upon the latest United States Census information available for the Territory), demographic factors, economic factors, competition, market penetration, the growth rate of other Craters & Freighters franchised businesses and other relevant factors solely determined by Franchisor. Franchisee understands that meeting the annual Minimum Performance Standards does not suggest that Franchisee is sufficiently penetrating the market in its Territory or that its Franchised Business will be successful. Rather, the Minimum Performance Standards are threshold minimum amounts. In the event Franchisee does not meet the Minimum Performance Standards, Franchisor will have the right to reduce the size of, or otherwise modify, Franchisee's Territory upon providing 30 days' written notice to Franchisee.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, the Minimum Performance Standards are influenced by several factors. These include the population within the franchisee's territory based on the latest United States Census information, demographic and economic factors, the level of competition, and the extent of market penetration achieved by the franchisee.
Additionally, the growth rate of other Craters & Freighters franchised businesses is taken into account. The document also mentions "other relevant factors solely determined by Franchisor," giving Craters & Freighters discretion to consider additional elements when setting these standards.
It is important to note that meeting the Minimum Performance Standards does not guarantee the franchisee's success or sufficient market penetration. These standards are merely threshold minimum amounts. If a franchisee fails to meet these standards, Craters & Freighters reserves the right to reduce the size of, or otherwise modify, the franchisee's territory after providing 30 days' written notice.