factual

Does the Craters & Freighters franchisee agreement state that the franchisee conducted an independent investigation of the system?

Craters_Freighters Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (iii) Independent Investigation. Franchisee has conducted an independent investigation of the System and recognizes the Franchised Business venture contemplated by this Agreement and its success involves substantial business risk and will be largely dependent upon the ability of Franchisee as an independent business person and its active participation in the daily affairs of the Franchised Business. Franchisee hereby assumes the responsibility for its success or failure of the Franchised Business.

Source: Item 22 — CONTRACTS (FDD pages 49–50)

What This Means (2025 FDD)

According to the 2025 Craters & Freighters Franchise Disclosure Document, the franchise agreement includes an acknowledgement by the franchisee that they have conducted an independent investigation of the Craters & Freighters system. The agreement also states that the franchisee recognizes that the Craters & Freighters business venture involves substantial business risk. The agreement specifies that the success of the business will largely depend on the franchisee's abilities as an independent business person and their active participation in the daily affairs of the franchised business. Finally, the franchisee assumes responsibility for the success or failure of their Craters & Freighters business.

This clause is a standard inclusion in franchise agreements. It serves to protect Craters & Freighters from future claims by franchisees that they were misled or did not understand the risks involved in starting the business. By signing the agreement, the franchisee confirms they have done their own due diligence and are entering the agreement with a full understanding of the potential challenges and rewards.

Prospective Craters & Freighters franchisees should take this clause seriously and conduct a thorough investigation of the franchise opportunity before signing the agreement. This investigation should include reviewing the FDD, speaking with existing franchisees, and seeking advice from legal and financial professionals. While Craters & Freighters encourages this investigation, the ultimate responsibility for assessing the viability and risks of the franchise lies with the franchisee.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.