If Craters & Freighters modifies a mark, does the franchisee have to comply?
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, franchisees must comply if Craters & Freighters decides to modify or discontinue using any mark. Franchisees must follow Craters & Freighters' directions within a reasonable time after receiving notice.
However, Craters & Freighters will not reimburse franchisees for any out-of-pocket expenses incurred when modifying or discontinuing the use of a mark. This includes substituting a different trademark or service mark on major signage identifying the premises.
Furthermore, Craters & Freighters will not compensate franchisees for any loss of goodwill associated with the modified or discontinued mark. They also will not cover any expenditures made by the franchisee to promote a modified or substitute trademark or service mark. This could potentially create a financial burden for the franchisee, as they would need to bear the costs of rebranding and marketing efforts associated with the new mark.