What are the Craters & Freighters franchisee's obligations regarding compliance with laws?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
r any purpose whatsoever, and nothing in any aspect of the System or the Marks in any way shifts any employee or employment related responsibility from Franchisee to Franchisor. Franchisee agrees to be solely responsible for all employment decisions and, in accordance with Section 6.10 of this Agreement, to comply with all state, federal, and local hiring laws and functions of the Franchised Business, including without limitation, those related to hiring, firing, training, wage and hour requirements, compensation, promotion, record-keeping, supervision, discipline, and workplace safety of employees, paid or unpaid, full or part-time.
- 6.12 Compliance with Lease. Franchisee must comply with both the Lease and any additional leasehold covenants and regulations of the building in which the Premises is located. In the event the landlord of the Premises terminates the Lease due to Franchisee's default of such Lease, such termination of the Lease will also constitute 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.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, franchisees have several obligations to comply with laws and regulations. Craters & Freighters franchisees are solely responsible for all employment decisions related to their franchised business. This includes complying with all state, federal, and local hiring laws. These laws cover various aspects of employment, such as hiring, firing, training, wage and hour requirements, compensation, promotion, record-keeping, supervision, discipline, and workplace safety for all employees, whether paid or unpaid, full-time or part-time.
Furthermore, Craters & Freighters franchisees must handle all customer complaints and requests for refunds and adjustments in a manner consistent with applicable laws and regulations, as well as Craters & Freighters's standards and specifications. Franchisees are also expected to manage and operate their franchised business in an ethical and honorable manner, ensuring that all employees provide courteous and professional services to customers while protecting the goodwill of the Craters & Freighters brand, system, and franchised business.
In addition to these general obligations, Craters & Freighters franchisees must comply with the terms of their lease agreement and any additional leasehold covenants and regulations of the building in which their premises are located. Failure to comply with the lease can result in termination of the lease, which would also constitute a material breach of the Franchise Agreement. This highlights the importance of understanding and adhering to all legal and contractual obligations associated with operating a Craters & Freighters franchise.