factual

What must a Craters & Freighters franchisee obtain prior to opening the Franchised Business?

Craters_Freighters Franchise · 2025 FDD

Answer from 2025 FDD Document

final decision regarding the Premises will be made by Franchisee. The location of the Premises, once approved by Franchisor, will be set forth in Attachment A to this Agreement.

  • 4.2 Lease of Premises. 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.
  • 4.3 Development of the Premises. Franchisee will be solely responsible for developing and furnishing the Premises. Franchisor will provide to Franchisee mandatory or suggested specifications for the premises of a Craters & Freighters Franchised Business including but not limited to those involving dimensions, design, image, interior layout, décor, fixtures, Equipment, computer hardware and software, signs, and color scheme which Franchisor has approved based on its standards for quality, design, appearance, function, and performance. Franchisee must provide Franchisor with the construction plans for the Premises ("Construction Plans"), and receive Franchisor's written approval of such Construction Plans, before construction of the Premises commences. Franchisee will, upon request by Franchisor, submit to Franchisor all revised or "as

built" Construction Plans during the construction of the Premises. Additionally, Franchisee is solely responsible, at Franchisee's own expense, for all of the following relating to developing and furnishing the Premises: (i) securing all required financing; (ii) obtaining all required permits and licenses; (iii) complying with all required permits and licenses; (iv) complying with all applicable laws and the Lease; (v) constructing all required improvements and decorating the Premises in compliance with the approved Construction Plans and then-current specifications of Franchisor relating to approved brands, types, or models;

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

What This Means (2025 FDD)

According to the 2025 Craters & Freighters Franchise Disclosure Document, a franchisee must fulfill several obligations before opening their franchised business. Specifically, Craters & Freighters requires that the franchisee's owner(s) and the Designated Manager participate in and complete the Initial Training Program to Craters & Freighters' satisfaction. This program is designed to equip the franchisee with the knowledge and skills necessary to operate the business according to Craters & Freighters' standards.

In addition to completing the training program, the franchisee must also secure Craters & Freighters' approval of the construction plans for the premises. This ensures that the physical location of the franchise meets Craters & Freighters' specifications for quality, design, appearance, function, and performance. The franchisee is responsible for developing and furnishing the premises according to Craters & Freighters' mandatory or suggested specifications, which cover aspects like dimensions, design, interior layout, décor, fixtures, equipment, computer hardware and software, signs, and color scheme.

Furthermore, the franchisee needs to have the lease for the premises approved by Craters & Freighters before executing it. Craters & Freighters' approval of the lease indicates that the terms and conditions fall within the acceptable criteria established by Craters & Freighters at that time. The franchisee must also use their best efforts to incorporate the terms and conditions set forth in the form of Collateral Assignment of Lease and Addendum into the lease. These requirements ensure that the franchisee has a suitable location and the necessary training to operate the Craters & Freighters business effectively.

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.