After the franchise is terminated or expires, is a Craters & Freighters franchisee allowed to solicit business from existing Craters & Freighters customers for a Competitive Business?
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. |
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, after the franchise is terminated or expires, a franchisee is restricted from soliciting business or customers of the Craters & Freighters franchise for a Competitive Business. This restriction includes any direct or indirect attempts to divert or solicit business.
Specifically, the franchisee cannot perform services for, consult for, engage in, acquire, lend money to, extend credit to, have any interest in, or be employed by a Competitive Business within certain areas. These areas include the premises of the former Franchised Business, the territory granted to the franchisee, and within a ten-mile radius of the Franchised Business or any other Craters & Freighters location.
This non-compete agreement also prevents the franchisee from attempting to endorse or enter into any business that competes with Craters & Freighters by granting franchises or licenses, or establishing joint ventures for Competitive Businesses. This is a standard practice in franchising to protect the brand and customer base of Craters & Freighters.