Is Craters & Freighters obligated to allocate business generated by the call center to the franchisee?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.7 Call Center. Franchisor reserves the right to establish, operate, or contract with one or more call centers for the purpose of receiving incoming telephone calls or other communications from prospective customers and/or placing outbound telephone calls or other communications to prospective customers. Such call center(s) may be operated by Franchisor, an Affiliate of Franchisor, or an independent third-party. Franchisor may, but is not obligated to, allocate business generated by such telephone calls or other communications to Franchisee; provided, however, Franchisor will use its best efforts to direct telephone calls or other communications from prospective customers located in the Territory to Franchisee. Franchisor reserves the right to use Marketing Fund monies for such call center(s).
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, Craters & Freighters reserves the right to establish and operate call centers, but they are not obligated to allocate all business generated from these call centers to the franchisee. These call centers can be run by Craters & Freighters, its affiliates, or an independent third party.
However, Craters & Freighters states that it will use its best efforts to direct calls from prospective customers located within the franchisee's territory to that franchisee. This indicates that while there's no guarantee, Craters & Freighters intends to prioritize directing leads from a franchisee's territory to that specific franchisee.
It is important to note that Craters & Freighters also reserves the right to use marketing funds for these call centers. This means that a portion of the franchisee's marketing fees could be used to operate a call center that may or may not directly benefit the franchisee's business. Prospective franchisees should consider the potential benefits and risks associated with the call center operations and how they align with their business goals.