Can a Craters & Freighters franchisee establish its own prices?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor has developed a program in connection with an Affiliate of Franchisor which solicits and administers business accounts (each a "National Account" and, collectively, the "National Accounts") for packaging and shipping from businesses or institutions which have operations in two (2) or more territories within the System ("National Accounts Program"). The fulfillment of any such National Account will first be offered to the franchisee operating the Craters & Freighters Franchised Business in the territory in which the business is to be serviced pursuant to the corresponding National Account agreement established by Franchisor or its designee. Such franchisee is required to service the National Account according to the terms and conditions (including the price(s)) established in the corresponding National Account agreement. If such franchisee fails or refuses to service the National Account in accordance with such terms and conditions, or if Franchisor determines—in Franchisor's sole discretion—that Franchisee will not meet certain requirements to perform the work requested under the relevant corresponding National Account agreement, Franchisor reserves the right to perform the requested service(s) for the National Account or to assign the work to other franchisees, outside third-party vendors, or an Affiliate of Franchisor, in Franchisor's sole determination. Franchisor reserves the right to establish mandatory policies and procedures relating to the National Accounts Program in the Operations Manuals.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, franchisees are generally required to adhere to pricing set by Craters & Freighters for National Accounts. The FDD outlines that Craters & Freighters has a National Accounts Program to solicit and administer business accounts for packaging and shipping from businesses with operations in two or more territories within the Craters & Freighters system.
If a franchisee is selected to service a National Account, they are obligated to do so according to the terms and conditions, including the prices, established in the National Account agreement. Should the franchisee fail or refuse to service the National Account under these terms, Craters & Freighters reserves the right to either perform the services themselves, assign the work to other franchisees, use third-party vendors, or assign the work to an affiliate.
This indicates that while franchisees may have some autonomy in setting prices for their regular business, they must adhere to the pricing dictated by Craters & Freighters for National Accounts. This condition is mandatory, and Craters & Freighters retains the authority to enforce it to ensure consistency and quality of service for its National Accounts.