How is the population determined for the Craters & Freighters Minimum Performance Standards?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
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, the minimum performance standards are based on the latest United States Census information available for the territory. In addition to population, Craters & Freighters also considers demographic factors, economic factors, competition, market penetration, and the growth rate of other Craters & Freighters franchised businesses. The franchisor solely determines other relevant factors.
Craters & Freighters uses these minimum performance standards as a threshold. Meeting these standards does not guarantee the franchisee is sufficiently penetrating the market or that the franchised business will be successful.
If a Craters & Freighters franchisee fails to meet the minimum performance standards, the franchisor has the right to reduce the size of, or otherwise modify, the franchisee's territory. The franchisor must provide 30 days' written notice to the franchisee before making any changes to the territory.