Are Craters & Freighters franchisees required to operate their franchised business in compliance with the Franchise Agreement?

According to Craters & Freighters' 2025 Franchise Disclosure Document, franchisees must operate their franchised business in compliance with the Franchise Agreement and the standards and specifications outlined in the Operations Manuals. This requirement ensures that all Craters & Freighters locations maintain consistent standards for quality and service.

This obligation extends to various aspects of the business, including insurance coverage. Franchisees are required to have specific insurance policies, such as commercial general liability coverage with limits of $2,000,000 for general aggregate and $1,000,000 for each occurrence, as well as umbrella coverage with a minimum limit of $1,000,000 per occurrence. These insurance requirements are the minimum, and Craters & Freighters recommends franchisees obtain additional coverage, such as warehouse storage and cyber insurance.

Furthermore, franchisees must purchase equipment, products, and services that meet or exceed the minimum requirements and specifications set by Craters & Freighters. These requirements, which are detailed in the Operations Manuals, cover a range of items from warehouse tools and equipment to packing materials and computer-related accessories. This ensures that franchisees use appropriate resources to maintain the quality of packing and shipping services. Craters & Freighters may revise these requirements and specifications from time to time.