After the relationship ends, for how long is a Restricted Person restricted from competing with Craters & Freighters?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
mployed as an officer, director, executive, or principal of any Competitive Business, as such term is defined in the Franchise Agreement.
-
- Post-Term Competition Restriction. For a period of two (2) years after (a) Restricted Person's relationship with Franchisee ends; (b) the expiration or termination of the Franchise Agreement; or (c) the approved transfer of the Franchise Agreement to a new franchisee, whichever occurs first, Restricted Person will not, without Franchisor's consent, directly or indirectly (such as through an affiliate or a family member) perform any services for, consult for, engage in, acquire, lend money to, extend credit to, have any interest in, or be employed as an officer, director, executive, or principal of any Competitive Business at or within the following areas: (i) at the Premises of the Franchised Business; (ii) within the Territory granted to Franchisee under the Franchisee Agreement; or (iii) within a radius of ten (10) miles of (a) the Premises of the Franchised Business, or (b) the premises of any other Craters & Freighters Franchised Business or any Craters & Freighters company-owned or Affiliate-owned outlet then-existing as of the date of the expiration, transfer, or termination of the Franchise Agreement.
-
- Reasonableness of Restrictions. Restricted Person acknowledges and confirms that the length of the term and geographical restrictions contained in Section 5 above are fair and reasonable and not the result of overreaching, duress, or coercion of any kind. In the event a court of competent jurisdiction rules that any of the restrictions set forth in this Agreement is unenforceable by virtue of its scope or in terms of geographic area, type of business activity prohibited, and/or length of time, Restricted Person agrees to comply with any lesser restriction deemed enforceable by the court.
-
- Enforcement.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, a Restricted Person is restricted from competing with Craters & Freighters for two years after the end of their relationship with the franchisee, the expiration or termination of the Franchise Agreement, or the approved transfer of the Franchise Agreement to a new franchisee, whichever occurs first. During this period, the Restricted Person cannot, without Craters & Freighters's consent, be involved in any Competitive Business. This includes performing services for, consulting for, engaging in, acquiring, lending money to, extending credit to, having any interest in, or being employed as an officer, director, executive, or principal.
The restriction applies specifically to the Premises of the Franchised Business, the Territory granted to the franchisee, and within a ten-mile radius of the Franchised Business or any other Craters & Freighters outlet. This prevents former franchisees or related parties from directly competing with existing Craters & Freighters businesses in close proximity.
The FDD also states that the Restricted Person acknowledges that these restrictions are fair and reasonable. Should a court find any restriction unenforceable due to its scope, geographic area, type of business activity, or length of time, the Restricted Person agrees to comply with any lesser restriction deemed enforceable by the court. Craters & Freighters also has the right to initiate legal proceedings to enforce the agreement, and if they prevail, the Restricted Person agrees to cover Craters & Freighters's enforcement costs, including attorney's fees.