What is the purpose of the 'Statement of Franchisee' according to Craters & Freighters?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
ORTH DAKOTA, RHODE ISLAND, SOUTH DAKOTA, VIRGINIA, WASHINGTON, OR WISCONSIN.
IF THE FRANCHISE IS TO BE OPERATED IN, OR YOU ARE A RESIDENT OF, MARYLAND, DO NOT SIGN THIS STATEMENT.
In order to make sure that no misunderstanding exists between you, the Franchisee, and us, Craters & Freighters Franchise Company (also called "Franchisee" or "we") and to make sure that no violations of law might have occurred, and understanding that we are relying on the statements you make in this document, you assure us as follows:
| Cash Flows from Financing Activities: | |||
|---|---|---|---|
| Distributions to Shareholder | - (4,945,919) | ||
| Due to Shareholder | 2,769,688 | - | |
| Net Cash Flows from Financing Activities | 2,769,688 | (4,945,919) | |
| Net Increase (Decrease) in Cash and Cash Equivalents | 4,615,333 | (2,279,537) |
Source: Item 23 — RECEIPTS (FDD pages 50–193)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, the Statement of Franchisee is used to ensure there are no misunderstandings between the franchisee and Craters & Freighters. It also confirms that no violations of law have occurred during the franchise sales process. Craters & Freighters relies on the accuracy of the statements made by the franchisee in this document. This statement is not applicable to franchisees in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin. If the franchise is to be operated in, or the franchisee is a resident of Maryland, the franchisee should not sign the statement.
The Statement of Franchisee requires the prospective franchisee to confirm several key points. These include acknowledging that no unauthorized promises or representations were made that contradict the Franchise Disclosure Document or the Franchise Agreement. It also confirms that the franchisee did not rely on any claims or representations about potential sales, costs, income, or profits, except as listed in Item 19 of the FDD. The franchisee must also confirm that they understand the importance of their personal business skills and hard work to the success of the Craters & Freighters business.
This statement serves as a protective measure for Craters & Freighters, ensuring that franchisees acknowledge the speculative nature of the investment and that they have not been misled by any claims outside of the official FDD. It also reinforces the understanding that the franchisee's own efforts are crucial for success. By signing this statement, the franchisee acknowledges their understanding of these key aspects of the franchise agreement and the risks involved.
Prospective franchisees should carefully review the Statement of Franchisee and ensure that all statements are true and accurate before signing. If there are any inconsistencies or concerns, they should immediately inform Craters & Freighters Franchise Company. This document is an important part of the franchise agreement and should be treated with due diligence.