Does the registration of the Craters & Freighters franchise offering by the California Department of Financial Protection and Innovation constitute approval, recommendation, or endorsement?

According to the 2025 Craters & Freighters Franchise Disclosure Document, the registration of the franchise offering by the California Department of Financial Protection and Innovation does not constitute approval, recommendation, or endorsement by the commissioner. This means that while Craters & Freighters has met the requirements to register its franchise in California, the state does not guarantee the success or viability of the franchise.

This disclaimer is standard practice in franchise regulation. State registration primarily ensures that the franchisor has provided certain required information to prospective franchisees, allowing them to make informed decisions. It does not signify that the state has assessed the business model or financial stability of Craters & Freighters.

For a potential Craters & Freighters franchisee, this means they must conduct their own thorough due diligence. This includes carefully reviewing the FDD, seeking advice from financial and legal advisors, and speaking with existing franchisees to understand their experiences. Relying solely on the fact that the franchise is registered in California would be insufficient to make a sound investment decision.