Are the remedies available to Craters & Freighters for understatement of Adjusted Gross Sales in addition to other remedies?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee fails or refuses to accurately report the Adjusted Gross Sales of the Franchised Business.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, if a franchisee fails to accurately report Adjusted Gross Sales, it constitutes a breach of the franchise agreement.
Specifically, the FDD states that if a Craters & Freighters franchisee fails or refuses to accurately report the Adjusted Gross Sales of the Franchised Business, this is a cause for default. This clause means that Craters & Freighters has grounds to take action against a franchisee who underreports their sales figures.
This is a fairly standard provision in franchise agreements. Underreporting sales is a serious issue as it directly impacts the royalties and marketing fund contributions owed to Craters & Freighters. The franchisee should ensure accurate and transparent reporting of all sales to avoid potential disputes and penalties.