Does Craters & Freighters guarantee potential revenue or operational criteria for an approved premises?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor will use reasonable efforts to assist Franchisee to locate a suitable Premises for the Franchised Business. Franchisee acknowledges and agrees that Franchisor's approval of the Premises and any information regarding the Premises do not constitute a representation or warranty of any kind, express or implied, as to the suitability of a site for the Franchised Business or for any other purpose. Franchisor's approval of the Premises indicates only that Franchisor believes that a site falls within the acceptable criteria established by Franchisor as of that time. Franchisee acknowledges that application of criteria that have been effective with respect to other sites may not be predictive of potential for all sites and that, subsequent to Franchisor's approval of a Premises, demographic and/or economic factors included in or excluded from Franchisor's criteria could change (including the entry of competing businesses into the market of the Franchised Business), thereby altering the potential of a particular Premises. The uncertainty and instability of such criteria are beyond Franchisor's control and Franchisor will not be responsible for the failure of a Premises approved by Franchisor to meet expectations as to potential revenue or operational criteria. Franchisee further acknowledges and agrees that Franchisee's purchase of a franchise for the operation of a Franchised Business at the Premises is based on Franchisee's own independent investigation of the suitability of the Premises and that the final decision regarding the Premises will be made by Franchisee.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the franchisor does not guarantee the potential revenue or operational criteria for an approved premises. Craters & Freighters will use reasonable efforts to assist a franchisee in locating a suitable premises.
Franchisee acknowledges and agrees that Craters & Freighters' approval of the Premises and any information regarding the Premises do not constitute a representation or warranty of any kind, express or implied, as to the suitability of a site for the Franchised Business or for any other purpose. Craters & Freighters' approval of the Premises indicates only that Craters & Freighters believes that a site falls within the acceptable criteria established by Craters & Freighters as of that time.
The FDD states that the application of criteria that have been effective with respect to other sites may not be predictive of potential for all sites and that, subsequent to Craters & Freighters' approval of a Premises, demographic and/or economic factors included in or excluded from Craters & Freighters' criteria could change (including the entry of competing businesses into the market of the Franchised Business), thereby altering the potential of a particular Premises. The uncertainty and instability of such criteria are beyond Craters & Freighters' control and Craters & Freighters will not be responsible for the failure of a Premises approved by Craters & Freighters to meet expectations as to potential revenue or operational criteria. Franchisee further acknowledges and agrees that Franchisee's purchase of a franchise for the operation of a Franchised Business at the Premises is based on Franchisee's own independent investigation of the suitability of the Premises and that the final decision regarding the Premises will be made by Franchisee.