When must a Craters & Freighters franchisee submit the report on the Franchised Business's insurance activities?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.1.2 On or before the tenth (10th) day of each calendar month, Franchisee must submit, and Franchisor must have received, a report on the Franchised Business's insurance activities for the preceding calendar month in the form then required by Franchisor. In the event Franchisor requires Franchisee to pay the Insurance Payment on a weekly basis, Franchisee must submit, and Franchisor must receive, such report by the deadline then established by Franchisor.
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 submit a report on the Franchised Business's insurance activities on or before the tenth day of each calendar month. This report must cover the insurance activities for the preceding calendar month and be in the format required by Craters & Freighters.
However, the FDD also states that if Craters & Freighters requires the franchisee to pay the Insurance Payment on a weekly basis, the franchisee must submit the insurance activity report by the deadline established by Craters & Freighters at that time. This indicates that the reporting frequency can change at the discretion of the franchisor.
This requirement ensures that Craters & Freighters stays informed about the insurance-related activities of each franchise location, allowing them to monitor compliance and manage risk effectively. For a prospective franchisee, this means being prepared to track and report insurance activities meticulously, either monthly or weekly, depending on the franchisor's requirements.