Must a Craters & Freighters franchisee notify the franchisor of any challenges to the Marks?

According to the 2025 Craters & Freighters Franchise Disclosure Document, franchisees are obligated to inform Craters & Freighters of any challenges to the Marks. The franchise agreement mandates that Craters & Freighters take action upon notification of such challenges or any trademark that is similar or confusing to the public. Craters & Freighters will handle the defense of the Marks at their own expense and discretion, reserving the right to control any related litigation. This requirement ensures that Craters & Freighters can protect its brand and intellectual property effectively.

This notification requirement is a standard practice in franchising, as franchisors need to maintain consistent brand standards and protect their trademarks. By promptly reporting any challenges, franchisees help Craters & Freighters address potential infringement issues and maintain the integrity of the brand. This also protects the franchisee, as Craters & Freighters assumes responsibility for defending the Marks.

Furthermore, franchisees are prohibited from contesting Craters & Freighters' rights to the Marks, trade secrets, or business techniques, either directly or indirectly. Franchisees must also discontinue using a Mark if Craters & Freighters modifies or discontinues its use. In such cases, Craters & Freighters will reimburse the franchisee for tangible out-of-pocket costs of compliance, such as changing letterheads and business cards. This ensures that franchisees are not financially burdened by changes to the Marks and that the brand remains consistent across all locations.