What is the Craters & Freighters franchisee's ongoing obligation regarding Licenses and Permits after opening the Franchised Business?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.4 Licenses and Permits for Franchised Business. Prior to opening the Franchised Business, Franchisee must obtain all required licenses, permits, and approvals to establish, open, and operate the Franchised Business at the Premises (collectively, the "Licenses and Permits"). Thereafter, Franchisee must maintain all applicable Licenses and Permits throughout this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, a franchisee must maintain all applicable licenses and permits throughout the term of the Franchise Agreement. This means that after initially obtaining all the necessary licenses, permits, and approvals to establish, open, and operate the Craters & Freighters business at the designated premises, the franchisee is responsible for keeping these licenses and permits current and valid.
This obligation ensures that the Craters & Freighters business operates legally and in compliance with all applicable regulations throughout its operation. Failure to maintain these licenses and permits could result in fines, penalties, or even the suspension or termination of the franchise agreement.
It is standard practice in franchising that franchisees are responsible for maintaining all required licenses and permits. Prospective Craters & Freighters franchisees should carefully investigate the specific licensing and permitting requirements in their local area and factor in the ongoing costs and administrative burden associated with maintaining these credentials.