What does Section 19.2 of the Craters & Freighters Franchise Agreement pertain to?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| Item | Provision | Section in Franchise Agreement | Summary |
|---|---|---|---|
| n. | Franchisor's right of first refusal to acquire franchisee's business | Section 17 | We have the first right of refusal on the sale of the franchise by you. |
| o. | Franchisor's option to purchase franchisee's business | Section 20.2 | Upon the termination or expiration of the Franchise Agreement, we will have the option, but not the obligation, to purchase any and all of the assets used by you to operate the Franchised Business at a purchase price equal to net depreciated book value. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTIONS (FDD pages 36–44)
What This Means (2025 FDD)
Based on the 2025 Craters & Freighters Franchise Disclosure Document, there is no direct mention of Section 19.2 of the franchise agreement within the provided excerpts. However, the excerpts do discuss various sections related to termination, including Section 20.2 which covers the franchisor's option to purchase the franchisee's business upon termination or expiration of the Franchise Agreement.
Item 17 provides a table summarizing key provisions of the Craters & Freighters Franchise Agreement related to renewal, termination, transfer, and dispute resolution. This table references sections such as 15.2 (non-competition during the franchise term), 15.3 (non-competition after termination/expiration), 16.3 (conditions for franchisor's approval of transfer), 17 (franchisor's right of first refusal), 18 (death or disability of franchisee), 23.1 (choice of forum), 23.2 and 23.3 (dispute resolution), 25.1 (modification of agreement and integration/merger clause).
To fully understand the details of Section 19.2, a prospective Craters & Freighters franchisee should carefully review the complete Franchise Agreement and consult with a legal professional. Specifically, they should ask the franchisor for clarification on what events or conditions trigger Section 19.2, what obligations or rights it creates for both the franchisor and franchisee, and how it interacts with other termination-related sections of the agreement.