Does Craters & Freighters provide a warranty regarding the suitability of an approved site?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that Franchisor must approve the lease, and any renewal of such lease (collectively, "Lease") for the Premises of the Franchised Business prior to executing such Lease. Franchisor's approval of such Lease cannot be unreasonably withheld or delayed. Franchisee agrees to use Franchisee's best efforts to incorporate into the Lease the terms and conditions set forth in the form of Collateral Assignment of Lease and Addendum, attached hereto as Attachment D to this Agreement. Franchisee acknowledges that Franchisor's approval of the Lease for the Premises does not constitute a guarantee or warranty by Franchisor, express or implied, of the successful operation or profitability of a Craters & Freighters Franchised Business operated at the Premises and indicates only that Franchisor believes the terms and conditions of the Lease fall within the acceptable criteria established by Franchisor as of that time. Franchisee agrees to deliver a copy of the executed Lease to Franchisor within fifteen (15) days after the execution of such Lease.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, Craters & Freighters' approval of a lease for the premises does not constitute a guarantee or warranty of the successful operation or profitability of the franchised business at that location. The approval only indicates that Craters & Freighters believes the lease terms fall within their acceptable criteria at that time.
This means that while Craters & Freighters must approve the lease for the franchisee's business premises, this approval should not be interpreted as an assurance of the site's suitability for a profitable Craters & Freighters franchise. The franchisee bears the risk of the location's performance.
Prospective franchisees should conduct their own due diligence regarding site selection and market analysis to determine if a location is likely to be successful. This could include assessing local demographics, competition, and traffic patterns. Franchisees should not rely solely on Craters & Freighters' lease approval as a guarantee of success.