Does Craters & Freighters have the right to license the use of other proprietary marks that are not confusingly similar to Craters & Freighters trademarks?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) to use and license the use of other proprietary and non-proprietary marks or methods which are not the same as or confusingly similar to our trademarks, whether in alternative channels of distribution or in the operation of a business offering shipping, packaging, crating, receiving and delivery, storage, transportation, moving, logistics, blanket wrap, and freight forwarding services and products, at any location, including within the Territory, which may be similar to or different from the business operated by you;
Source: Item 12 — TERRITORY (FDD pages 29–32)
What This Means (2025 FDD)
According to Craters & Freighters's 2025 Franchise Disclosure Document, Craters & Freighters retains the right to use and license other proprietary and non-proprietary marks that are not the same as or confusingly similar to their trademarks. This includes using these marks in alternative channels of distribution or in the operation of a business offering similar services such as shipping, packaging, crating, receiving and delivery, storage, transportation, moving, logistics, blanket wrap, and freight forwarding services and products. This right extends to any location, including within a franchisee's territory, and applies to businesses similar to or different from the franchisee's business.
This reservation of rights has several implications for prospective Craters & Freighters franchisees. Craters & Freighters can introduce other brands or methods, even within a franchisee's territory, as long as they are not confusingly similar to the Craters & Freighters brand. This could potentially lead to increased competition within the franchisee's territory if Craters & Freighters licenses a different but similar service.
Furthermore, Craters & Freighters retains the right to use these marks in alternative distribution channels. This means Craters & Freighters could explore different avenues for offering services, potentially impacting a franchisee's market share or requiring them to adapt to new competitive strategies introduced by the franchisor. Franchisees should consider how these reserved rights might affect their business operations and revenue potential within their exclusive territory.
It is important for potential franchisees to understand the scope of these reserved rights and how they might impact their business. While Craters & Freighters cannot operate businesses under the same or similar trademarks, the ability to use and license other marks provides them with considerable flexibility in expanding their market presence and exploring new business opportunities, potentially affecting the competitive landscape for franchisees.