What are the minimum performance standards required of a Craters & Freighters franchisee?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.3 Minimum Performance Standards. Franchisee must meet the minimum performance standards ("Minimum Performance Standards") set forth in Attachment B to this Agreement. The Minimum Performance Standards are based on population (which determination should be made based upon the latest United States Census information available for the Territory), demographic factors, economic factors, competition, market penetration, the growth rate of other Craters & Freighters franchised businesses and other relevant factors solely determined by Franchisor. Franchisee understands that meeting the annual Minimum Performance Standards does not suggest that Franchisee is sufficiently penetrating the market in its Territory or that its Franchised Business will be successful. Rather, the Minimum Performance Standards are threshold minimum amounts. In the event Franchisee does not meet the Minimum Performance Standards, Franchisor will have the right to reduce the size of, or otherwise modify, Franchisee's Territory upon providing 30 days' written notice to Franchisee.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, franchisees must adhere to minimum performance standards that are detailed in Attachment B of the Franchise Agreement. These Minimum Performance Standards are based on factors such as the population within the territory, demographic and economic conditions, the level of competition, market penetration, the growth rate of other Craters & Freighters franchises, and other factors determined solely by Craters & Freighters.
Craters & Freighters emphasizes that meeting these annual Minimum Performance Standards does not guarantee sufficient market penetration or the overall success of the franchise. Instead, these standards represent the minimum threshold amounts that a franchisee must achieve.
If a Craters & Freighters franchisee fails to meet the Minimum Performance Standards, Craters & Freighters has the right to reduce the size of, or otherwise modify, the franchisee's territory. Craters & Freighters will provide 30 days' written notice to the franchisee before making any such changes to the territory.