Does Craters & Freighters have the right to become an approved supplier in the future?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
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' 2025 Franchise Disclosure Document, Craters & Freighters retains the right to become an approved supplier at any time. This means that, in the future, franchisees may be required to purchase certain equipment, products, and services directly from Craters & Freighters. Currently, none of Craters & Freighters' affiliates are approved suppliers, and none of their officers or directors owns an interest in an approved supplier.
In 2024, neither Craters & Freighters nor its affiliates derived any revenue from franchisee purchases or leases from designated suppliers. However, Craters & Freighters and its affiliates reserve the right to do so in the future. The FDD states that the precise basis by which Craters & Freighters may derive revenue in the future is currently undetermined.
If Craters & Freighters does begin to derive revenue from franchisee purchases from designated suppliers, the FDD indicates that the specific method by which they will do so will be disclosed to franchisees. This is a fairly standard practice in franchising, as franchisors often negotiate volume discounts or rebates with suppliers, which can benefit both the franchisor and the franchisee through potentially lower costs.