What happens if Craters & Freighters decides to modify or discontinue a Mark?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.7 Modification or Discontinued Use of Marks.
If Franchisor determines it is advisable for Franchisor and/or Franchisee to modify or discontinue use of any Mark and/or use one or more additional or substitute trade or service marks, Franchisee agrees to comply with Franchisor's directions to do so within a reasonable time after notice thereof.
Franchisor will not reimburse Franchisee for any out-of-pocket expenses Franchisee incurs in modifying or discontinuing the use of a Mark and substituting therefore a different trademark or service mark in connection with the major signage identifying the premises.
Additionally, Franchisor will not reimburse Franchisee for any loss of goodwill associated with the modified or discontinued Mark or for any expenditures made by Franchisee to promote a modified or substitute trademark or service mark.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, if Craters & Freighters decides to modify or discontinue the use of any of its marks, franchisees must comply with the company's directions to do so within a reasonable time after receiving notice. This includes adhering to any changes regarding trade or service marks.
However, Craters & Freighters will not reimburse franchisees for any out-of-pocket expenses incurred when modifying or discontinuing the use of a mark. This lack of reimbursement extends to costs associated with substituting a different trademark or service mark, particularly concerning major signage identifying the premises.
Furthermore, Craters & Freighters will not compensate franchisees for any loss of goodwill connected with the modified or discontinued mark. Franchisees also bear the financial responsibility for any expenditures made to promote a modified or substitute trademark or service mark. This means that franchisees must be prepared to absorb these costs, which could impact their profitability and require careful financial planning.