factual

Are Craters & Freighters franchisees required to work with other franchisees in a specific manner?

Craters_Freighters Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisee must also work with other Craters & Freighters franchisees in an ethical, honorable, and cooperative manner.

Franchisee agrees to abide by Franchisor's then current policies on marketing outside the Territory, if any, and on cooperating with neighboring Craters & Freighters franchisees, as the same may be set forth from time to time in the Operations Manuals.

Franchisor has developed a program in connection with an Affiliate of Franchisor which solicits and administers business accounts (each a "National Account" and, collectively, the "National Accounts") for packaging and shipping from businesses or institutions which have operations in two (2) or more territories within the System ("National Accounts Program"). The fulfillment of any such National Account will first be offered to the franchisee operating the Craters & Freighters Franchised Business in the territory in which the business is to be serviced pursuant to the corresponding National Account agreement established by Franchisor or its designee. Such franchisee is required to service the National Account according to the terms and conditions (including the price(s)) established in the corresponding National Account agreement. If such franchisee fails or refuses to service the National Account in accordance with such terms and conditions, or if Franchisor determines—in Franchisor's sole discretion—that Franchisee will not meet certain requirements to perform the work requested under the relevant corresponding National Account agreement, Franchisor reserves the right to perform the requested service(s) for the National Account or to assign the work to other franchisees, outside third-party vendors, or an Affiliate of Franchisor, in Franchisor's sole determination. Franchisor reserves the right to establish mandatory policies and procedures relating to the National Accounts Program in the Operations Manuals.

Source: Item 22 — CONTRACTS (FDD pages 49–50)

What This Means (2025 FDD)

According to the 2025 Craters & Freighters Franchise Disclosure Document, franchisees are required to work with other franchisees in a specific manner. Franchisees must conduct themselves in an ethical, honorable, and cooperative way when dealing with fellow Craters & Freighters franchisees.

Additionally, Craters & Freighters franchisees are expected to cooperate with neighboring franchisees, adhering to any policies outlined in the Operations Manuals regarding marketing activities outside of their designated territory. This cooperation ensures that all franchisees contribute to a positive brand image and maintain consistent standards across the Craters & Freighters network.

Furthermore, Craters & Freighters has developed a National Accounts Program, where fulfillment of packaging and shipping services for businesses with operations in multiple territories is first offered to the franchisee within the territory where the service is needed. The franchisee is then required to service the National Account according to the terms and conditions (including the price(s)) established in the corresponding National Account agreement. If the franchisee cannot fulfill the service, Craters & Freighters may assign the work to other franchisees.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.