Can a Craters & Freighters franchisee knowingly solicit business outside of their Territory?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
You may only solicit business in the Territory for the purpose of obtaining customers who reside or operate within the Territory, and you cannot knowingly solicit business outside of the Territory. However, you are not required to verify that your customers reside or conduct business within the Territory. Accordingly, it is possible that you may provide services to customers who reside or conduct business outside of the Territory. At the same time, it is also possible that another Craters and Freighters Franchised Business may provide services to customers who reside or conduct business within the Territory.
You may be granted, in our sole discretion, express permission to promote and advertise your Franchised Business to customers in an unsold territory adjacent to your Territory ("Adjacent Territory").
Source: Item 12 — TERRITORY (FDD pages 29–32)
What This Means (2025 FDD)
According to Craters & Freighters's 2025 Franchise Disclosure Document, franchisees are generally restricted from actively seeking business outside their designated territory. The FDD states that a franchisee may only solicit business in the Territory for the purpose of obtaining customers who reside or operate within the Territory, and you cannot knowingly solicit business outside of the Territory.
However, the agreement does not require franchisees to verify where their customers reside or operate. This means that while a Craters & Freighters franchisee cannot intentionally target customers outside their territory, they may still provide services to those customers if they happen to come their way. Conversely, another Craters & Freighters franchise may provide services to customers who reside or conduct business within your territory.
Craters & Freighters also reserves the right to use alternative channels of distribution, such as the Internet or catalog sales, to make sales within or outside of a franchisee's territory. Franchisees are not allowed to independently use these alternative channels to make sales outside their territory without prior written approval from Craters & Freighters. If a franchisee receives information on prospective business outside of their Territory, they must relay the information to the owner of the Franchise who owns the Territory where the business is located. In areas where there are no Craters & Freighters Franchised Businesses, you may provide services to the prospective client.