What happens if a Craters & Freighters franchisee intentionally understates the Franchised Business's Adjusted Gross Sales in any report or financial statement?

According to Craters & Freighters' 2025 Franchise Disclosure Document, if a franchisee fails or refuses to accurately report the Adjusted Gross Sales of the Franchised Business, it constitutes a breach of the franchise agreement.

This failure to accurately report Adjusted Gross Sales can lead to termination of the franchise agreement by Craters & Freighters. Adjusted Gross Sales are defined as the total amounts received from customers for services and products, excluding sales taxes collected and remitted to the appropriate authorities.

For a prospective Craters & Freighters franchisee, this means that accurate and transparent financial reporting is critical. Underreporting sales figures, even unintentionally, can have severe consequences, including potential termination of the franchise agreement. Franchisees should maintain meticulous records and ensure compliance with all reporting requirements to avoid any disputes or penalties.