What is the franchisee's obligation regarding the use of the Craters & Freighters Proprietary Software?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
obligations and duties hereunder.
- 5.3 Promotional Support for Opening. Franchisor will provide Franchisee with promotional support for the opening of the Franchised Business.
- 5.4 Proprietary Software and Other Software. Franchisor will develop, maintain, and grant Franchisee the right to use Franchisor's proprietary operating software ("Proprietary Software"). The Proprietary Software will be the central platform the Franchised Business uses to process customer jobs from start to finish with consistency, efficiency, and accuracy. Additionally, all royalty reports submitted by the Franchised Business will be managed exclusively through the Proprietary Software, which is also designed to assist Franchisee in streamlining operations and complying with Franchisor's standards. Franchisor will also require Franchisee to use select software, as solely determined by Franchisor.
- 5.5 Email Account(s). As partial consideration for Franchisee's payment of the Technology Fee, Franchisor will establish up to seven (7) email accounts for Franchisee to use exclusively in connection with the Franchised Business. In the event Franchisee requests any additional email accounts, Franchisee acknowledges and agrees that Franchisee will pay Franchisor's then-current rate for such email account(s), and such amount will be added to the amount of the Technology Fee paid by Franchisee.
- 5.6 Franchisee Geosite. Franchisor will establish and maintain a stand-alone website for Franchisee ("Franchisee Geosite"), which is separate and apart from Franchisor's website. Such Franchisee Geosite will include the contact information for the Franchised Business and various customer-oriented functions relating to products and services offered by 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, Craters & Freighters will develop, maintain, and grant the franchisee the right to use its proprietary operating software. This Proprietary Software serves as the central platform for processing customer jobs from beginning to end, ensuring consistency, efficiency, and accuracy. All royalty reports from the franchised business will be managed exclusively through this software, which is designed to streamline operations and ensure compliance with Craters & Freighters' standards.
Craters & Freighters also requires franchisees to use select software, as determined solely by Craters & Freighters. Furthermore, franchisees are obligated to conduct their franchised business in strict accordance with the specifications, standards, operating procedures, and rules set forth in the Franchise Agreement, the Operations Manuals, and as otherwise established and communicated by Craters & Freighters. These System Standards are in place to protect Craters & Freighters' standards, systems, names, Marks, Confidential Information, and Trade Secrets, including the Proprietary Software.
Failure to comply with these System Standards, including the use of the Proprietary Software as directed, constitutes a material default under the Franchise Agreement. This means that adhering to the prescribed use of the Proprietary Software and any other mandated software is not optional but a strict requirement for maintaining the franchise agreement in good standing. Prospective franchisees should recognize the importance of mastering and consistently using the provided software to align with Craters & Freighters' operational and reporting requirements.