What payments must be current for a Craters & Freighters franchisee to be eligible for transfer approval?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.3 Conditions for Approval of Transfer. So long as Franchisee and its owner(s) are in full compliance with this Agreement as of the date of the transfer, Franchisor will not reasonably withhold its approval of a transfer that meets all of the following conditions prior to or concurrently with the effective date of the transfer:
- 16.3.1 No Default. Franchisee and Franchisee's owner(s) have performed all obligations and duties under this Agreement.
- 16.3.2 Payments. Franchisee has paid all Royalty Fees, Marketing Fund Contributions, Insurance Payments, Technology Fees, and other amounts owed by Franchisee to Franchisor, any Affiliate of Franchisor, and any third-party creditors relating to the Franchised Business.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, a franchisee must be current on all financial obligations to gain approval for a franchise transfer. Specifically, the franchisee must have paid all Royalty Fees, Marketing Fund Contributions, Insurance Payments, Technology Fees, and any other amounts owed to Craters & Freighters, its affiliates, or any third-party creditors related to the Craters & Freighters business.
This requirement ensures that Craters & Freighters maintains financial stability and that the incoming franchisee is not burdened with pre-existing debts or liabilities. It also protects the interests of Craters & Freighters and its other franchisees by ensuring that all financial obligations are met before a transfer is approved.
In addition to these payments, the franchisee and its owners must be in full compliance with the Franchise Agreement as of the transfer date. This includes fulfilling all other obligations and duties outlined in the agreement. Meeting these financial and compliance conditions is crucial for a Craters & Freighters franchisee looking to transfer their business.