Does Craters & Freighters require franchisees to purchase packing systems?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
To maintain the high standards of our system and to fulfill the quality packing and shipping of products, you must purchase various equipment, products, and other items or services that meet or exceed minimum requirements and specifications that we establish. Such requirements and specifications may appear in our Operations Manuals and include the following: warehouse tools and equipment (e.g., power tools such as saws, nail guns, and drills); warehouse equipment (e.g., packing systems, forklift, and a scale); hardware and fasteners (e.g., nails, staples, screws, gloves, and utility knives); packing material (e.g., lumber, corrugated, and foams); hardware and software, Internet connection and service, dedicated telephone and power lines, and other computer related accessories, peripherals, and equipment to operate the computer, Proprietary Software, and select software we provide you (See ITEM 12), as well as fax machine and telephone; office furniture; office and miscellaneous supplies; and a 16' to 26' box truck.
We may revise these requirements and specifications from time to time. We are not an approved supplier, but we reserve the right to become an approved supplier at any time in our discretion. None of our Affiliates is an approved supplier. None of our officers or directors owns an interest in an approved supplier. Neither we nor any of our Affiliates derived any revenue in 2024 from franchisee purchases or leases of products and services from our designated suppliers, but we and our Affiliates reserve the right to do so in the future. The precise basis by which we may derive revenue in the future is undetermined at this time. If we derive revenue in the future from your purchases or leases of products and services from our designated suppliers, the precise basis by which we will do so will be disclosed to you.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–20)
What This Means (2025 FDD)
According to Craters & Freighters's 2025 Franchise Disclosure Document, franchisees must purchase various equipment, products, and other items or services that meet or exceed the minimum requirements and specifications established by Craters & Freighters to maintain the high standards of their system and to fulfill the quality packing and shipping of products. These requirements and specifications may be found in the Operations Manuals.
Among the items that franchisees are required to purchase are warehouse tools and equipment such as power tools, warehouse equipment (including packing systems, a forklift, and a scale), hardware and fasteners, packing material, hardware and software, internet connection, dedicated telephone and power lines, computer-related accessories, peripherals, and equipment to operate the computer, proprietary software, a fax machine and telephone, office furniture, office and miscellaneous supplies, and a 16' to 26' box truck.
Craters & Freighters may revise these requirements and specifications from time to time. While Craters & Freighters is not an approved supplier, they reserve the right to become one at any time. Franchisees can request to use suppliers other than those approved by Craters & Freighters, but Craters & Freighters has the right to approve or disapprove the request within 30 days. Craters & Freighters estimates that the purchase of products and services from them or their designated or approved sources will be approximately 0% of the total cost to establish a Craters & Freighters franchise and 2% to 3% of the total cost of operating the franchise.