Does Craters & Freighters operate any of its own Franchised Businesses?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
We are in the business of granting franchises for the operation of centers offering a variety of crating, packaging, shipping, receiving and delivery, storage, transportation, logistics and freight forwarding services and products for companies and individuals (each, a "Craters & Freighters Franchised Business" or "Franchised Business"). Craters & Freighters Franchised Businesses utilize the shipping services of private carriers. We do not operate any Craters & Freighters Franchised Businesses.
Craters & Freighters Franchised Businesses operate under our distinctive business format, systems, methods, procedures, designs, layouts, and specifications, which we may improve, further develop, or otherwise modify from time to time ("System").
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–10)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, Craters & Freighters does not operate any of its own franchised businesses. The FDD specifies that Craters & Freighters is in the business of granting franchises for the operation of centers offering crating, packaging, shipping, and related services. These franchised businesses operate under Craters & Freighters's system, utilizing their trademarks and methods.
This indicates that Craters & Freighters focuses on franchising as its primary business model, rather than operating company-owned locations that would compete with its franchisees. This structure can align the franchisor's success with the success of its franchisees, as the franchisor's revenue is primarily derived from franchise fees and royalties.
Furthermore, the document states that Craters & Freighters will not operate or grant franchises within a franchisee's territory, provided the franchisee complies with the Franchise Agreement. This provides a level of territorial protection for franchisees, but it is contingent on the franchisee meeting the terms of the agreement, including minimum performance standards. Failure to meet these standards could result in a reduction or adjustment of the franchisee's territory.