Does the Craters & Freighters Franchise Agreement contain an integration/merger clause?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| Item | Provision | Section in Franchise Agreement | Summary |
|---|---|---|---|
| r. | Non-competition covenants after the franchise is terminated or expires | Section 15.3 | You may not 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 Competitive Business at or within the following areas: (i) at the Premises of the Franchised Business; (ii) within the Territory granted to you; or (iii) within a radius of ten (10) miles of (a) the Premises of the Franchised Business, or (b) the premises of any other Craters & Freighters Franchised Business or any Craters & Freighters company-owned or Affiliate-owned outlet then-existing as of the date of the expiration, transfer, or termination of the Franchise Agreement. You may not divert, attempt to divert, or solicit business or customers of the Franchised Business or any Craters & Freighters Franchised Business to any Competitive Business, by direct or indirect inducement or otherwise. You may not attempt to endorse, or enter into any business competing in whole or in part with us in granting franchisors or licenses, or establishing joint ventures, for Competitive Businesses. |
| s. | Modification of the agreement | Section 25.1 | No modifications except by agreement but Operations Manuals subject to change. |
| t. | Integration/merger clause | Section 25.1 | Only the terms of the Franchise Agreement are binding (subject to state laws). Any representations or promises outside the disclosure document and franchise agreement may not be enforceable. Nothing in the Franchise Agreement or any related agreement is intended to disclaim our representations in this Franchise Disclosure Document. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTIONS (FDD pages 36–44)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, the Franchise Agreement contains an integration/merger clause. Section 25.1 of the agreement states that only the terms within the Franchise Agreement are binding, although this is subject to state laws.
This clause means that any promises or representations made outside of the Craters & Freighters Franchise Disclosure Document and the Franchise Agreement itself may not be legally enforceable. This is a standard provision in franchise agreements designed to prevent franchisees from relying on verbal promises or marketing materials that are not formally incorporated into the contract.
However, the clause also clarifies that nothing in the Franchise Agreement or any related agreement is intended to disclaim the representations made by Craters & Freighters in the Franchise Disclosure Document. This provides some assurance that the information presented in the FDD is considered binding and reliable.