What is the Craters & Freighters franchisee's obligation regarding compliance with rules related to the Proprietary Software?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
stitute a material breach of this Agreement by Franchisee, so long as Franchisor verifies Franchisee's alleged default(s) of such Lease.
- 6.13 Compliance with System Standards. To protect the reputation and goodwill of Franchisor and the System, and to maintain uniform standards of operation under the Marks, Franchisee will conduct the Franchised Business in strict accordance with the specifications, standards, operating procedures, and rules set forth in this Agreement, the Operations Manuals, and otherwise established and communicated by Franchisor (collectively the "System Standards"). Franchisee acknowledges the System Standards are intended to protect Franchisor's standards, systems, names, Marks, Confidential Information, and Trade Secrets (including but not limited to the Proprietary Software) and are not intended to control the day-to-day operation of Franchisee's Franchised Business. Franchisee further acknowledges and agrees that Franchisee's Franchised Business will be under the control of the Franchisee at all times and that Franchisee will be solely responsible for the day-to-day operation of the business. Any failure or refusal by Franchisee to comply with the System Standards will be a material default by Franchisee under this Agreement.
- 6.14 Display of Logo. Throughout the duration of this Agreement, Franchisee will use and display the Marks and will make the Craters & Freighters logo ("Logo") the primary focus of identification on all promotional and direct mail, such as on letterhead, envelopes, and sales material. Any signage used on buildings, trucks, or billboards in connection with the Franchised Business will
display the Logo.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters FDD, franchisees must conduct their franchised business in strict accordance with the specifications, standards, operating procedures, and rules which are collectively known as the "System Standards." These standards are detailed in the Franchise Agreement, the Operations Manuals, and other communications from Craters & Freighters. Franchisees acknowledge that these System Standards are in place to protect Craters & Freighters' standards, systems, names, Marks, Confidential Information, and Trade Secrets, including the Proprietary Software.
The FDD states that any failure or refusal by the franchisee to comply with the System Standards will be considered a material default under the Franchise Agreement. However, the franchisee retains control over the day-to-day operations of their business.
Craters & Freighters also reserves the right to periodically change, improve, or further develop the System, including the Marks. The franchisee is obligated to promptly accept and comply with any changes to the System and incur necessary expenditures to comply, up to an aggregate amount of $10,000 during the term of the agreement. Franchisees should be aware of these obligations and potential costs associated with system updates and compliance.