Does Craters & Freighters have the right to establish maximum resale prices as part of a national promotion?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor has developed a program in connection with an Affiliate of Franchisor which solicits and administers business accounts (each a "National Account" and, collectively, the "National Accounts") for packaging and shipping from businesses or institutions which have operations in two (2) or more territories within the System ("National Accounts Program"). The fulfillment of any such National Account will first be offered to the franchisee operating the Craters & Freighters Franchised Business in the territory in which the business is to be serviced pursuant to the corresponding National Account agreement established by Franchisor or its designee. Such franchisee is required to service the National Account according to the terms and conditions (including the price(s)) established in the corresponding National Account agreement. If such franchisee fails or refuses to service the National Account in accordance with such terms and conditions, or if Franchisor determines—in Franchisor's sole discretion—that Franchisee will not meet certain requirements to perform the work requested under the relevant corresponding National Account agreement, Franchisor reserves the right to perform the requested service(s) for the National Account or to assign the work to other franchisees, outside third-party vendors, or an Affiliate of Franchisor, in Franchisor's sole determination. Franchisor reserves the right to establish mandatory policies and procedures relating to the National Accounts Program in the Operations Manuals.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 36)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, Craters & Freighters has the ability to set prices within the National Accounts Program. As part of the National Accounts Program, Craters & Freighters solicits and administers business accounts for packaging and shipping from businesses or institutions with operations in two or more territories within the Craters & Freighters system.
If a franchisee is chosen to service a National Account, they are required to do so according to the terms and conditions, including the prices, established in the corresponding National Account agreement. If the franchisee fails or refuses to service the National Account according to these terms, Craters & Freighters reserves the right to perform the services themselves, assign the work to other franchisees, use outside third-party vendors, or assign the work to an affiliate.
This means that as a Craters & Freighters franchisee, you may be required to adhere to pricing set by the franchisor for National Accounts. Refusal to do so could result in losing the account. However, this only applies to National Accounts and not necessarily to all services offered by the franchise. Craters & Freighters also retains the right to establish mandatory policies and procedures relating to the National Accounts Program in the Operations Manuals.