Is the franchisee's decision to purchase a Craters & Freighters franchise based on their own investigation of the premises' suitability?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee further acknowledges and agrees that Franchisee's purchase of a franchise for the operation of a Franchised Business at the Premises is based on Franchisee's own independent investigation of the suitability of the Premises and that the final decision regarding the Premises will be made by Franchisee.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the franchisee's decision to purchase a franchise is based on their own independent investigation of the suitability of the premises. While Craters & Freighters may offer assistance in locating a suitable premises, the final decision rests with the franchisee. Craters & Freighters' approval of a premises does not constitute a warranty of any kind regarding the site's suitability or potential. It only indicates that the site falls within the company's acceptable criteria at that time.
The FDD emphasizes that criteria effective for other locations may not predict the potential of all sites. Demographic or economic factors could change after Craters & Freighters' approval, impacting the premises' potential. Craters & Freighters explicitly states they will not be responsible if an approved premises fails to meet expectations regarding revenue or operational criteria due to these uncontrollable factors.
Therefore, a prospective Craters & Freighters franchisee should conduct thorough due diligence on the location, considering factors beyond the franchisor's initial approval. This includes assessing local market conditions, potential competition, and long-term economic trends to determine if the site is truly suitable for their business. The franchisee bears the ultimate responsibility for the success or failure of the location.