Is operating a warehouse a requirement for Craters & Freighters franchisees, and what happens if they fail to do so?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- 19.2.4 Warehouse.
Franchisee fails or refuses to operate a warehouse within the Premises necessary for the operation of the Franchised Business.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, franchisees are required to operate a warehouse within their premises. The warehouse must be necessary for the operation of the franchised business. Failure to operate a warehouse is considered a breach of the franchise agreement.
Specifically, if a Craters & Freighters franchisee fails or refuses to operate a warehouse within the premises that is necessary for the operation of the franchised business, it constitutes an event of default under the agreement.
This requirement ensures that franchisees have the necessary infrastructure to provide crating, packaging, shipping, receiving, delivery, storage, transportation, logistics services, and freight forwarding services. Maintaining a warehouse allows franchisees to meet the standards and specifications set by Craters & Freighters for quality, design, appearance, function, and performance.