Can a Craters & Freighters franchisee use the Marks in a way that creates liability for the Franchisor?

According to the 2025 Craters & Freighters Franchise Disclosure Document, a franchisee cannot use the Marks in any way that may result in liability for Craters & Freighters. The franchisee is explicitly prohibited from using the Marks in signing any contract or applying for any license or permit in a manner that could create liability for the franchisor regarding the franchisee's debts or obligations. Furthermore, the franchisee is restricted from using the Marks in any way not expressly authorized by Craters & Freighters.

This provision protects Craters & Freighters from potential legal or financial repercussions stemming from unauthorized actions by the franchisee. It ensures that the franchisee's business operations do not create unintended liabilities for the franchisor. This is a fairly standard clause in franchise agreements, as franchisors need to protect their brand and reputation from misuse by franchisees.

For a prospective Craters & Freighters franchisee, this means they must be extremely careful about how they use the Craters & Freighters Marks in all business dealings. They must adhere strictly to the guidelines provided by Craters & Freighters and avoid any actions that could potentially create financial or legal obligations for the franchisor. This includes being cautious when signing contracts, applying for permits, or engaging in any activity that could be interpreted as representing Craters & Freighters in a way that binds them to the franchisee's liabilities.