How long does the post-term competition restriction last for Craters & Freighters?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
mployed as an officer, director, executive, or principal of any Competitive Business, as such term is defined in the Franchise Agreement.
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- Post-Term Competition Restriction. For a period of two (2) years after (a) Restricted Person's relationship with Franchisee ends; (b) the expiration or termination of the Franchise Agreement; or (c) the approved transfer of the Franchise Agreement to a new franchisee, whichever occurs first, Restricted Person will not, without Franchisor's consent, directly or indirectly (such as through an affiliate or a family member) perform any services for, consult for, engage in, acquire, lend money to, extend credit to, have any interest in, or be employed as an officer, director, executive, or principal of any Competitive Business at or within the following areas: (i) at the Premises of the Franchised Business; (ii) within the Territory granted to Franchisee under the Franchisee Agreement; or (iii) within a radius of ten (10) miles of (a) the Premises of the Franchised Business, or (b) the premises of any other Craters & Freighters Franchised Business or any Craters & Freighters company-owned or Affiliate-owned outlet then-existing as of the date of the expiration, transfer, or termination of the Franchise Agreement.
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- Reasonableness of Restrictions. Restricted Person acknowledges and confirms that the length of the term and geographical restrictions contained in Section 5 above are fair and reasonable and not the result of overreaching, duress, or coercion of any kind.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, a franchisee is subject to a post-term competition restriction for two years after the end of their franchise agreement. This restriction begins after the relationship between the franchisee and Craters & Freighters ends, the Franchise Agreement expires or terminates, or the approved transfer of the Franchise Agreement to a new franchisee, whichever comes first.
During this two-year period, the franchisee is restricted from involvement with any Competitive Business without Craters & Freighters's consent. This includes performing services for, consulting for, engaging in, acquiring, lending money to, extending credit to, having any interest in, or being employed as an officer, director, executive, or principal of a Competitive Business.
The non-compete restrictions apply (i) at the Premises of the Franchised Business; (ii) within the Territory granted to Franchisee under the Franchisee Agreement; or (iii) within a radius of ten (10) miles of (a) the Premises of the Franchised Business, or (b) the premises of any other Craters & Freighters Franchised Business or any Craters & Freighters company-owned or Affiliate-owned outlet then-existing as of the date of the expiration, transfer, or termination of the Franchise Agreement. The FDD states that these restrictions are considered fair and reasonable.