What happens if a Craters & Freighters franchisee does not meet the Minimum Performance Standards?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must meet the minimum performance standards ("Minimum Performance Standards") set forth in Attachment B to this Agreement. The Minimum Performance Standards are based on population (which determination should be made based upon the latest United States Census information available for the Territory), demographic factors, economic factors, competition, market penetration, the growth rate of other Craters & Freighters franchised businesses and other relevant factors solely determined by Franchisor. Franchisee understands that meeting the annual Minimum Performance Standards does not suggest that Franchisee is sufficiently penetrating the market in its Territory or that its Franchised Business will be successful. Rather, the Minimum Performance Standards are threshold minimum amounts. In the event Franchisee does not meet the Minimum Performance Standards, Franchisor will have the right to reduce the size of, or otherwise modify, Franchisee's Territory upon providing 30 days' written notice to Franchisee.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, franchisees must adhere to Minimum Performance Standards, which are detailed in Attachment B of the Franchise Agreement. These standards are determined by Craters & Freighters and are based on factors such as population within the territory, demographic and economic conditions, competition, market penetration, and the growth rate of other Craters & Freighters franchises.
Craters & Freighters emphasizes that meeting these Minimum Performance Standards does not guarantee market penetration or business success. Instead, they represent threshold minimum amounts. If a franchisee fails to meet these standards, Craters & Freighters retains the right to reduce the size of, or otherwise modify, the franchisee's territory.
Craters & Freighters will provide a 30-day written notice to the franchisee before making any changes to the territory due to not meeting the Minimum Performance Standards. This condition highlights the importance of franchisees meeting the set standards to maintain their original territory size and potential market.