If a Craters & Freighters franchisee engages a Designated Manager, who is responsible for the operation of the Franchised Business?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
Regardless as to whether Franchisee engages a Designated Manager, Franchisee is solely responsible for all aspects of the operation of the Franchised Business and ensuring that all the terms, conditions, and requirements contained in this Agreement and in the Operations Manuals are met and kept. Franchisee will use best efforts to ensure that the Franchised Business is sufficiently staffed.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 35–36)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters FDD, even if a franchisee hires a Designated Manager, the franchisee remains ultimately responsible for all aspects of the Franchised Business's operation. This includes ensuring that all terms, conditions, and requirements outlined in the Franchise Agreement and the Operations Manuals are fully met and maintained.
This means that while a Designated Manager may handle day-to-day tasks, the franchisee cannot delegate away their overall accountability. The franchisee must ensure the business is adequately staffed and operates according to Craters & Freighters' standards.
This arrangement places a significant responsibility on the franchisee, who must oversee the Designated Manager's performance and ensure compliance with all franchise requirements. It is crucial for prospective franchisees to understand that hiring a manager does not absolve them of their obligations under the Franchise Agreement. They must actively monitor the business and ensure it adheres to Craters & Freighters' standards to avoid potential breaches of contract.