What factors does Craters & Freighters use to determine the 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 Craters & Freighters' 2025 Franchise Disclosure Document, the Minimum Performance Standards are based on several factors. These include the population within the territory, which is determined using the latest United States Census information. Demographic and economic factors are also considered, along with the level of competition in the area and Craters & Freighters' market penetration. The growth rate of other Craters & Freighters franchised businesses is another factor.
Craters & Freighters also considers other relevant factors that it solely determines. It is important to note that meeting these Minimum Performance Standards does not guarantee the franchisee's success or sufficient market penetration. Instead, these standards represent threshold minimum amounts that a franchisee must achieve.
If a Craters & Freighters franchisee fails to meet the Minimum Performance Standards, Craters & Freighters has the right to reduce the size of the franchisee's territory or modify it in other ways. The franchisee will be provided with 30 days' written notice before any such changes are made to their territory.