Does the Craters & Freighters franchisee acknowledge they have not received any assurance of potential success?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that Franchisor must approve the lease, and any renewal of such lease (collectively, "Lease") for the Premises of the Franchised Business prior to executing such Lease. Franchisor's approval of such Lease cannot be unreasonably withheld or delayed. Franchisee agrees to use Franchisee's best efforts to incorporate into the Lease the terms and conditions set forth in the form of Collateral Assignment of Lease and Addendum, attached hereto as Attachment D to this Agreement. Franchisee acknowledges that Franchisor's approval of the Lease for the Premises does not constitute a guarantee or warranty by Franchisor, express or implied, of the successful operation or profitability of a Craters & Freighters Franchised Business operated at the Premises and indicates only that Franchisor believes the terms and conditions of the Lease fall within the acceptable criteria established by Franchisor as of that time. Franchisee agrees to deliver a copy of the executed Lease to Franchisor within fifteen (15) days after the execution of such Lease.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, a franchisee acknowledges that the franchisor's approval of a lease for the premises does not constitute a guarantee or warranty of successful operation or profitability. This means that while Craters & Freighters must approve the lease for the franchisee's business location, this approval is simply an indication that the lease terms meet the franchisor's established criteria at that time.
This acknowledgement is important for prospective franchisees because it clarifies that Craters & Freighters is not providing any assurance of financial success based on the lease approval. The franchisee bears the ultimate responsibility for the success or failure of their Craters & Freighters franchise. This is a standard practice in franchising, as the franchisor cannot guarantee the performance of an independently owned and operated business.
Therefore, a potential Craters & Freighters franchisee should not interpret the franchisor's lease approval as a promise of profitability. Instead, they should conduct their own thorough market research, develop a comprehensive business plan, and carefully consider all the risks and opportunities associated with the franchise before making a final investment decision. Understanding this disclaimer is crucial for managing expectations and making informed decisions.