How long does the Franchisor have to approve or disapprove a Craters & Freighters franchisee's renewal request?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 2.2.8 Franchisee has paid to Franchisor a successor fee ("Successor Fee") in the amount of Five Thousand Dollars ($5,000).
- 2.3 Notice of Intention to Renew. If Franchisee desires to enter into a Successor Franchise Agreement, Franchisee must provide Franchisor with written notice of such desire ("Renewal Request Notice") at least six (6) months, but not more than nine (9) months, prior to the expiration of the Initial Term of this Agreement. Upon receipt of the Renewal Request Notice, Franchisor will have one (1) month to approve or disapprove Franchisor's renewal request, and Franchisor will notify Franchisee in writing of such approval or disapproval.
- 2.4 Confirmation from Franchisor. If Franchisee provides Franchisor with the Renewal Request Notice and Franchisor approves Franchisee's renewal request, prior to entering into the Successor Franchise Agreement, Franchisor will provide a copy of Franchisor's then-current Franchise Disclosure Document, so long as Franchisor's registration of such Franchise Disclosure Document is current, if applicable to the state in which the Franchised Business is located.
- 2.5 Return of Executed Documents.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, if a franchisee wishes to renew their franchise agreement, they must provide written notice to Craters & Freighters between six and nine months before the end of their current term. Upon receiving this notice, Craters & Freighters has one month to either approve or disapprove the renewal request. Craters & Freighters will then notify the franchisee in writing of their decision.
This timeline is important for franchisees to keep in mind, as missing the notification window could jeopardize their ability to renew their franchise. Similarly, the one-month approval period allows the franchisee to plan accordingly based on Craters & Freighters' decision. Franchisees should proactively manage this process to ensure a smooth transition, whether that involves renewal or preparing to exit the business.
To renew, a Craters & Freighters franchisee must meet several conditions, including meeting the franchisor's standards for franchisees entering the system, meeting or exceeding financial performance targets for renewing franchisees, executing a general release of claims against the franchisor, and paying a successor fee of $5,000. Meeting these requirements does not guarantee renewal, but they are necessary conditions for Craters & Freighters to consider the request.