For a Craters & Freighters franchise, what does the franchisor's approval of the premises indicate?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges and agrees that Franchisor's approval of the Premises and any information regarding the Premises do not constitute a representation or warranty of any kind, express or implied, as to the suitability of a site for the Franchised Business or for any other purpose. Franchisor's approval of the Premises indicates only that Franchisor believes that a site falls within the acceptable criteria established by Franchisor as of that time. Franchisee acknowledges that application of criteria that have been effective with respect to other sites may not be predictive of potential for all sites and that, subsequent to Franchisor's approval of a Premises, demographic and/or economic factors included in or excluded from Franchisor's criteria could change (including the entry of competing businesses into the market of the Franchised Business), thereby altering the potential of a particular Premises. The uncertainty and instability of such criteria are beyond Franchisor's control and Franchisor will not be responsible for the failure of a Premises approved by Franchisor to meet expectations as to potential revenue or operational criteria. Franchisee further acknowledges and agrees that Franchisee's purchase of a franchise for the operation of a Franchised Business at the Premises is based on Franchisee's own independent investigation of the suitability of the Premises and that the final decision regarding the Premises will be made by Franchisee. The location of the Premises, once approved by Franchisor, will be set forth in Attachment A to this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the franchisor's approval of the premises indicates that Craters & Freighters believes the site falls within the acceptable criteria they have established at that time. The physical appearance and location of the premises must meet Craters & Freighters' standards and specifications. A loading dock and an overhead dock door that enables the franchisee to ship out and receive large items of freight is preferable. If the dock door opens to ground level, the franchisee must have a forklift.
However, Craters & Freighters' approval does not constitute a representation or warranty of any kind, express or implied, as to the suitability of a site for the franchised business or for any other purpose. The FDD states that the application of criteria that have been effective with respect to other sites may not be predictive of potential for all sites. Demographic and/or economic factors could change after Craters & Freighters' approval, which could alter the potential of a particular premises.
Therefore, a prospective Craters & Freighters franchisee should not rely solely on the franchisor's approval as a guarantee of success. The franchisee is responsible for their own independent investigation of the suitability of the premises and makes the final decision regarding the premises. The location of the premises, once approved by Craters & Freighters, will be set forth in Attachment A to the Franchise Agreement.