Where can I find the Minimum Performance Standards for a Craters & Freighters franchise?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.3 Minimum Performance Standards. 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 detailed in Attachment B of the Franchise Agreement. Specifically, Section 3.3 of Item 22 states that franchisees must meet these standards, which are based on factors such as population, demographics, economic conditions, competition, market penetration, and the growth rate of other Craters & Freighters franchises. These standards are determined solely by Craters & Freighters.
It's important to note that meeting the Minimum Performance Standards does not guarantee the franchisee's success or sufficient market penetration within their territory. Instead, these standards represent the minimum threshold amounts a franchisee must achieve.
If a Craters & Freighters franchisee fails to meet the Minimum Performance Standards, Craters & Freighters retains the right to reduce the size of, or otherwise modify, the franchisee's territory. Craters & Freighters will provide the franchisee with 30 days' written notice before making any such changes to the territory.