Is a Craters & Freighters franchisee's use of the Marks restricted to the operation of the Franchised Business?

According to the 2025 Craters & Freighters Franchise Disclosure Document, a franchisee's use of the Marks is explicitly restricted to the operation of the Franchised Business. The FDD states that the franchisee's right to use the Marks is a "mere privilege" granted during the agreement, and this use must adhere to the standards and specifications set by Craters & Freighters in the agreement and operations manuals. This means a franchisee cannot use the Craters & Freighters Marks for any other business ventures or outside the scope of their franchised operations.

This restriction ensures that the Craters & Freighters brand maintains a consistent image and quality across all its franchise locations. It prevents franchisees from using the brand's reputation for unauthorized purposes, which could potentially harm the brand's goodwill. The franchisee's permitted use includes only the Marks designated in the Operations Manuals or in writing as part of the System.

Furthermore, the franchisee cannot use any other mark, name, or indicia of origin of Craters & Freighters, whether existing or acquired in the future. This provision is designed to protect Craters & Freighters's intellectual property and prevent any confusion among customers. Franchisees are also prohibited from contesting the validity or ownership of the Marks, reinforcing Craters & Freighters's control over its brand identity.

Upon termination or expiration of the franchise agreement, the franchisee must immediately discontinue all use of the Marks and must not give the impression that they are still operating a Craters & Freighters franchise. This further emphasizes the limited and conditional nature of the franchisee's right to use the Marks, tying it directly to the active operation of the Franchised Business under the terms of the franchise agreement.