Will Craters & Freighters reimburse a franchisee for out-of-pocket expenses incurred when modifying or discontinuing the use of a Mark on major signage?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.7 Modification or Discontinued Use of Marks.
If Franchisor determines it is advisable for Franchisor and/or Franchisee to modify or discontinue use of any Mark and/or use one or more additional or substitute trade or service marks, Franchisee agrees to comply with Franchisor's directions to do so within a reasonable time after notice thereof.
Franchisor will not reimburse Franchisee for any out-of-pocket expenses Franchisee incurs in modifying or discontinuing the use of a Mark and substituting therefore a different trademark or service mark in connection with the major signage identifying the premises.
Additionally, Franchisor will not reimburse Franchisee for any loss of goodwill associated with the modified or discontinued Mark or for any expenditures made by Franchisee to promote a modified or substitute trademark or service mark.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, Craters & Freighters will not reimburse a franchisee for out-of-pocket expenses if the franchisee has to modify or discontinue the use of a Mark on major signage. This includes substituting a different trademark or service mark.
Furthermore, Craters & Freighters will not reimburse a franchisee for any loss of goodwill associated with the modified or discontinued Mark. Craters & Freighters also will not reimburse a franchisee for any expenditures made to promote a modified or substitute trademark or service mark.
This policy means that franchisees must bear the full financial burden of rebranding efforts related to major signage. This could potentially involve significant costs for new signs, marketing materials, and other promotional activities. Franchisees should factor in these potential expenses when evaluating the overall cost of investing in a Craters & Freighters franchise.