How can the Interim Period for a Craters & Freighters franchise be terminated?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.6 Interim Period.
If Franchisee does not sign a Successor Franchise Agreement prior to the date on which the Initial Term of this Agreement expires and Franchisee continues to accept the benefits of this Agreement after the expiration of this Agreement, then at Franchisor's option, this Agreement may be treated either as (i) expired as of the date of expiration with Franchisee then operating without a license to do so and in violation of Franchisor's rights; or (ii) continued on a month-to-month basis ("Interim Period") until one party provides the other with written notice of such party's intent to terminate the Interim Period, in which case the Interim Period will terminate thirty (30) days after receipt of the notice to terminate the Interim Period.
In the latter case, all of Franchisee's obligations will remain in full force and effect during the Interim Period as if this Agreement had not expired, and all obligations and restrictions imposed on Franchisee upon expiration of this Agreement will be deemed to take effect upon termination of the Interim Period.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, the Interim Period, which occurs if a franchisee continues to operate after the initial term without signing a Successor Franchise Agreement, can be terminated by either party providing written notice to the other.
The FDD specifies that the Interim Period will end thirty days after the other party receives a notice of intent to terminate. During this Interim Period, all of the franchisee's obligations remain in full effect, as if the original agreement had not expired.
Upon termination of the Interim Period, all obligations and restrictions that would normally be imposed on the franchisee upon the expiration of the original agreement will take effect. This means that the franchisee must adhere to post-term obligations such as non-compete clauses and confidentiality agreements.