Are Craters & Freighters franchisees required to purchase office and miscellaneous supplies?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
To maintain the high standards of our system and to fulfill the quality packing and shipping of products, you must purchase various equipment, products, and other items or services that meet or exceed minimum requirements and specifications that we establish. Such requirements and specifications may appear in our Operations Manuals and include the following: warehouse tools and equipment (e.g., power tools such as saws, nail guns, and drills); warehouse equipment (e.g., packing systems, forklift, and a scale); hardware and fasteners (e.g., nails, staples, screws, gloves, and utility knives); packing material (e.g., lumber, corrugated, and foams); hardware and software, Internet connection and service, dedicated telephone and power lines, and other computer related accessories, peripherals, and equipment to operate the computer, Proprietary Software, and select software we provide you (See ITEM 12), as well as fax machine and telephone; office furniture; office and miscellaneous supplies; and a 16' to 26' box truck.
We may revise these requirements and specifications from time to time. We are not an approved supplier, but we reserve the right to become an approved supplier at any time in our discretion. None of our Affiliates is an approved supplier. None of our officers or directors owns an interest in an approved supplier. Neither we nor any of our Affiliates derived any revenue in 2024 from franchisee purchases or leases of products and services from our designated suppliers, but we and our Affiliates reserve the right to do so in the future. The precise basis by which we may derive revenue in the future is undetermined at this time. If we derive revenue in the future from your purchases or leases of products and services from our designated suppliers, the precise basis by which we will do so will be disclosed to you.
If you desire to use suppliers other than those which have been approved by us, you must submit your request to us in writing. We will then review the request and notify you of our approval or disapproval within 30 days. We apply the following general criteria in approving a proposed supplier: ability to provide sufficient quantity of product; quality of products and/or services at competitive prices; production and delivery capability; and dependability and general reputation of the supplier.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–20)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, franchisees are required to purchase office and miscellaneous supplies. To maintain the system's standards and quality, franchisees must purchase various equipment, products, and other items or services that meet or exceed minimum requirements and specifications. These requirements may be detailed in the Operations Manuals.
Besides office and miscellaneous supplies, the required purchases include warehouse tools and equipment such as power tools, packing systems, forklifts, and scales. Franchisees must also acquire hardware and fasteners like nails, staples, screws, gloves, and utility knives, as well as packing material such as lumber, corrugated materials, and foams. Furthermore, franchisees need to have hardware and software, an internet connection, dedicated telephone and power lines, computer-related accessories, a fax machine, a telephone, office furniture, and a 16' to 26' box truck.
Craters & Freighters retains the right to revise these requirements and specifications over time. While Craters & Freighters is not currently an approved supplier, they reserve the right to become one in the future. The FDD indicates that purchases from approved sources are estimated to be approximately 0% of the initial investment and 2% to 3% of the total cost of operating the franchise.