Where can I find more information about territory size for Craters & Freighters?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
We offer two types of territories (each a "Territory"): 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. All population determinations will be based upon the latest United States Census information available for the various territories.
We will not operate Craters & Freighters businesses or grant franchises for Craters & Freighters Franchised Businesses in your Territory unless you fail to comply with the Franchise Agreement and we terminate the Franchise Agreement. Your failure to satisfy your minimum performance standards may result in the reduction of, or adjustments to, your Territory.
Competition
Due to the entry of a growing number of private parties into the market for custom crating, packaging, and freight forwarding services, and the growth and proliferation of businesses offering packaging and shipping products and services, the market for the products and services which a Craters & Freighters Franchised Business offers is developing rapidly, changing constantly, and becoming increasingly competitive. A Craters & Freighters Franchised Business will offer services to both business and residential consumers and will have to compete directly or indirectly with freight and custom packaging, crating services, freight forwarding and related businesses.
Regulations
Certain states and local jurisdictions may have enacted laws, rules, regulations, and ordinances that apply to the packaging and shipping industry and may require, in certain instances, that you obtain certain licenses and permits. These regulations may establish certain standards, specifications, and requirements that must be followed by you. You should investigate whether there are any regulations and requirements that may apply in the geographic area in which you are interested in locating your Craters & Freighters Franchised Business, and you should consider both their effect and the cost of compliance. You may also be required to register your business location with a state agency.
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters FDD, Item 1 and Item 12 provide details regarding territory size. 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 people. If a prospective franchisee requests a territory with a population exceeding 1,000,000, they must pay a Supplemental Territory Fee of $0.015 per additional person. All population determinations are based on the latest United States Census information.
Item 12 further explains that a franchisee's failure to meet minimum performance standards may result in a reduction or modification of their territory. Franchisees can only solicit business within their designated territory to obtain customers residing or operating within that territory and cannot knowingly solicit business outside of it. However, franchisees are not required to verify that their customers reside or conduct business within the territory, which means they may provide services to customers outside their territory. Conversely, another Craters & Freighters franchise may serve customers within a franchisee's territory.
Craters & Freighters may grant a franchisee permission to promote and advertise in an unsold territory adjacent to their own. However, if that adjacent territory is later granted to another franchisee, the original franchisee must cease all promotional efforts, return customer data, and stop providing services in that adjacent territory. Craters & Freighters also reserves the right to operate or franchise businesses outside of a franchisee's territory, regardless of proximity. The franchisee will not receive compensation if Craters & Freighters solicits or accepts orders from their territory. These stipulations highlight the importance of understanding the terms and conditions related to territory, performance, and competition within the franchise agreement.