After the Craters & Freighters franchise agreement terminates, can the franchisee continue to use any aspect of the system?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
nchisor, as the case may be, all monies owed to Franchisor or such Affiliate(s), respectively, within ten (10) days of the date on which the Agreement was terminated or expired.
- 20.1.2 Discontinue Use of Marks. Franchisee must discontinue the use of the Marks including, but not limited to, all of Franchisor's trademarks, service marks and trade names. Additionally, Franchisee must cease doing business under any name or in any manner that might provide the general public with the impression that Franchisee is operating a Craters & Freighters Franchised Business. At the option of Franchisor, within a reasonable period after the termination or expiration of this
Agreement, Franchisee must destroy or return to Franchisor any physical copies or electronic versions of items bearing or containing any of the Marks.
- 20.1.3 Discontinue Use of Confidential Information and Trade Secrets. Franchisee must discontinue the use, in any manner, or for any purpose, directly or indirectly, of any of Franchisor's Confidential Information, Trade Secrets, or any other aspect of the System. At the option of Franchisor, Franchisee must destroy or return to Franchisor any physical copies or electronic versions of items containing any Confidential Information, Trade Secrets, or any other aspect of the System.
- 20.1.4 Discontinue Telephone Numbers. Franchisee must discontinue the use of all telephone numbers associated with the Franchised Business and transfer such numbers to Franchisor.
- 20.1.5 Compliance with Post-Term Restrictive Covenants. Franchisee and Franchisee's owner(s) must comply with the post-term restrictive covenants set forth in Section 15.3 of this Agreement.
- 20.2 Franchisor's Option to Purchase Assets.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, upon termination of the Franchise Agreement, the franchisee must immediately discontinue all use of the Craters & Freighters Marks. This includes trademarks, service marks, and trade names. The franchisee must also stop operating under any name or in any manner that could give the public the impression that they are still a Craters & Freighters franchise.
At Craters & Freighters's option, the franchisee must either destroy or return any physical or electronic copies of items bearing the Marks within a reasonable time after termination or expiration of the agreement. This prevents any potential confusion or misrepresentation of affiliation with the Craters & Freighters brand after the franchise relationship ends.
Furthermore, for two years after the agreement terminates, the franchisee is restricted from engaging in any competitive business activities within a specified area. This includes performing services for, consulting for, or being involved with any competitive business within the territory granted under the agreement or within a 10-mile radius of the former franchise location or any other Craters & Freighters outlet. This non-compete clause protects Craters & Freighters's market and customer base.