factual

What must a Craters & Freighters franchisee do before 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; (vi) purchasing and installing all required fixtures, Equipment, and signs required for the Premises; (vii) placing or displaying at the Premises (interior and exterior) only such signs, emblems, lettering, logos, and display materials that Franchisor approves from time to time; and (viii) purchasing an opening inventory of materials and supplies, including the Equipment.

  • 4.4 Continuous Operation at the Premises. Franchisee agrees to operate the Franchised Business at the Premises, in accordance with Franchisor's standards, throughout the Initial Term and any Successor Term of this Agreement, unless otherwise approved in writing by Franchisor.
  • 4.5 Relocation of the Premises. In the event Franchisee desires to relocate the Premises, Franchisee must obtain Franchisor's prior written consent, which Franchisor will not unreasonably withhold, so long as: (i) Franchisee secures an alternate location for the Premises within the Territory that meets Franchisor's then-current site selection criteria for the Premises 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, prior to opening their franchised business, a franchisee must fulfill several key obligations. First, the franchisee needs to have the lease for their business premises approved by Craters & Freighters. The franchisee is expected to incorporate specific terms and conditions, outlined in the Collateral Assignment of Lease and Addendum, into their lease agreement. The franchisee is also responsible for the development and furnishing of the premises according to Craters & Freighters' specifications, which include dimensions, design, image, interior layout, and required equipment. Construction plans must be submitted to Craters & Freighters for written approval before any construction begins.

Another crucial step before opening is the completion of the Initial Training Program. Craters & Freighters requires that the franchisee and their designated manager participate in and complete this training program to the franchisor's satisfaction. This program covers the operation of a Craters & Freighters franchise. The franchisee is responsible for covering all travel and living expenses associated with attending the Initial Training Program.

Craters & Freighters also provides promotional support for the opening of the franchised business. Furthermore, the franchisee will use Craters & Freighters' proprietary operating software, which serves as the central platform for processing customer jobs and managing royalty reports. The franchisee is also obligated to use select software as determined by Craters & Freighters. These steps ensure that the franchisee's business aligns with Craters & Freighters' standards and operational procedures right from the outset.

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.