For a Craters & Freighters franchise, is the franchisee required to personally participate in the direct management of the Franchised Business?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.15 Management of the Franchised Business.
Franchisee must manage and operate the Franchised Business in an ethical and honorable manner.
Franchisee must ensure that all those working at the Franchised Business provide courteous and professional services to customers and always keep the customers' interests in mind while protecting the goodwill of the Marks, System, and Franchised Business.
Franchisee must handle all customer complaints and requests for refunds and adjustments in a manner consistent with applicable laws and regulations and Franchisor's applicable standards and specifications.
Franchisee must also work with other Craters & Freighters franchisees in an ethical, honorable, and cooperative manner.
Franchisor cannot willfully engage in a course of conduct which includes any misrepresentations or deceptive or unlawful acts or practices in connection with offering and/or selling products and services to customers.
- 6.16 Periodic Ongoing Training; Convention and Regional Meetings.
Franchisee's manager(s) will attend periodic courses or training meetings with respect to new methods, techniques, equipment, services, and procedures, at such times and locations that Franchisor designates.
In the event such Franchisee personnel are required to travel to attend such periodic courses or training meetings, Franchisee will be responsible for all travel and living expenses incurred in connection with any such courses or training meetings.
Franchisee's owner(s) or designee(s) of such owner(s) must attend Franchisor's annual franchisee convention.
Franchisee's owners must attend regional meetings conducted by Franchisor.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 35–36)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters FDD, the franchisee must manage and operate the franchised business in an ethical and honorable manner. This includes ensuring that all employees provide courteous and professional services to customers, keeping customer interests in mind, and protecting the goodwill of the Craters & Freighters brand, system, and franchised business.
The franchisee is also responsible for handling customer complaints and requests for refunds and adjustments in accordance with applicable laws, regulations, and Craters & Freighters' standards. Furthermore, the franchisee must work cooperatively and ethically with other Craters & Freighters franchisees. The franchisee cannot engage in misrepresentations, deceptive acts, or unlawful practices when offering or selling products and services to customers.
Craters & Freighters requires the franchisee's managers to attend periodic training courses or meetings on new methods, techniques, equipment, services, and procedures. The franchisee is responsible for all travel and living expenses associated with this training. Additionally, the franchisee's owners or their designees must attend Craters & Freighters' annual franchisee convention and regional meetings conducted by the franchisor.
These requirements indicate that while Craters & Freighters expects the franchisee to oversee the business, there is also an option to designate managers to handle day-to-day operations, provided they also undergo the necessary training. This allows for some flexibility in how the franchisee chooses to manage the business, whether directly or through appointed managers, while still adhering to Craters & Freighters' standards and guidelines.