Where can I find important provisions of the Craters & Freighters Franchise Agreement?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| Item | Provision | Section in Franchise Agreement | Summary | |------|-------------------------------------------------------------------------|--------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | m. | Conditions for franchisor's approval of transfer | Section 16.3 | You and your owner(s) have performed all obligations and duties under the Franchise Agreement; you have paid all amounts due and owing to us, any Affiliate of ours, and any third-party creditors relating to the Franchised Business; the transfer is conducted in compliance with applicable laws and regulations; the transferee and its owner(s) are individual(s) of good moral character, have sufficient business experience, aptitude, and financial resources to operate the Franchised Business, and have otherwise met our then applicable standards for franchisees and franchisee owners; the transferee and/or its management personnel have completed our initial training program to our satisfaction; payment of the Transfer Fee; you have executed a general release, in a form satisfactory to us, of any and all claims against us, our subsidiaries, and Affiliates, and their respective shareholders, directors, officers, employees, agents, successors, and assignees; we have approved the material terms and conditions of such transfer; any financing is subordinate to the transferee's obligations to pay Royalty Fees and other amounts due under the Franchise Agreement; if required, the landlord of the Premises has consented to the assignment or sublease; we have not exercised our its right of first refusal; and the transferee and its owner(s) have executed our then current form of franchise agreement. | | n. | Franchisor's right of first refusal to acquire franchisee's business | Section 17 | We have the first right of refusal on the sale of the franchise by you. | | o. | Franchisor's option to purchase franchisee's business | Section 20.2 | Upon the termination or expiration of the Franchise Agreement, we will have the option, but not the obligation, to purchase any and all of the assets used by you to operate the Franchised Business at a purchase price equal to net depreciated book value. |
| Item | Provision | Section in Franchise Agreement | Summary |
|---|---|---|---|
| p. | Death or disability of franchisee | Section 18 | Upon death or permanent disability of |
| Franchisee or a principal owner of Franchisee, | |||
| the executor, administrator, conservator, | |||
| guardian, or other personal representative of | |||
| such person must transfer its interest in the | |||
| Franchise Agreement or such interest in | |||
| Franchisee to a third party approved by us | |||
| within six months. | |||
| q. | Non-competition covenants during the term of the franchise | Section 15.2 | You may not, directly or indirectly, perform any services for, consult for, engage in, acquire, lend money to, extend credit to, have any interest in, or be employed as an officer, director, executive, or principal of any business that offers shipping, packaging, crating, receiving and delivery, storage, transportation, moving, logistics, blanket wrap, or freight forwarding services, or products or services similar to the Franchised Business ("Competitive Business") without our prior written consent. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTIONS (FDD pages 36–44)
What This Means (2025 FDD)
According to the 2025 FDD, Item 17 provides a summary of important provisions within the Craters & Freighters Franchise Agreement. The table outlines various provisions and directs you to the specific section in the Franchise Agreement where each is detailed.
Some of the key provisions summarized include non-competition covenants both during and after the franchise term, which are found in Sections 15.2 and 15.3 of the Franchise Agreement, respectively. These sections outline restrictions on your involvement with competitive businesses. The modification of the agreement, addressed in Section 25.1, states that changes are only valid if agreed upon, but the Operations Manuals are subject to change by Craters & Freighters.
The table also points to sections covering dispute resolution (Sections 23.2 and 23.3), which specifies mediation and arbitration processes in Denver, Colorado, and choice of forum (Section 23.1), which mandates litigation in Colorado, both subject to state law. Additionally, it covers conditions for franchisor's approval of transfer (Section 16.3), franchisor's right of first refusal (Section 17), and franchisor's option to purchase the franchisee's business (Section 20.2).