What is the significance of the franchisee's handwriting in completing the Craters & Freighters 'Statement of Franchisee'?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
STATEMENT OF FRANCHISEE
[Note: Dates and Answers Must be Completed in the Prospective Franchisee's Own Handwriting]
THIS STATEMENT SHALL NOT BE COMPLETED BY YOU, AND WILL NOT APPLY, IF THE OFFER OR SALE OF THE FRANCHISE IS SUBJECT TO THE STATE FRANCHISE DISCLOSURE LAWS IN THE STATES OF CALIFORNIA, HAWAII, ILLINOIS, INDIANA, MARYLAND, MICHIGAN, MINNESOTA, NEW YORK, NORTH DAKOTA, RHODE ISLAND, SOUTH DAKOTA, VIRGINIA, WASHINGTON, OR WISCONSIN.
IF THE FRANCHISE IS TO BE OPERATED IN, OR YOU ARE A RESIDENT OF, MARYLAND, DO NOT SIGN THIS STATEMENT.
In order to make sure that no misunderstanding exists between you, the Franchisee, and us, Craters & Freighters Franchise Company (also called "Franchisee" or "we") and to make sure that no violations of law might have occurred, and understanding that we are relying on the statements you make in this document, you assure us as follows:
Source: Item 23 — RECEIPTS (FDD pages 50–193)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, the franchisee's handwriting is required on the 'Statement of Franchisee' to ensure that the prospective franchisee fully understands the document and that there are no misunderstandings between the franchisee and Craters & Freighters. This statement confirms that the franchisee is making certain assurances to Craters & Freighters, and Craters & Freighters is relying on these statements. The FDD specifies that dates and answers must be completed in the prospective franchisee's own handwriting. This requirement aims to prevent any potential legal issues or claims of misrepresentation. However, this requirement does not apply if the offer or sale of the franchise is subject to state franchise disclosure laws in certain states, including California, Hawaii, Illinois, and others. Also, if the franchise is to be operated in, or the franchisee is a resident of, Maryland, the franchisee should not sign the statement.
The 'Statement of Franchisee' includes several critical acknowledgements. For instance, if there were no oral, written, visual, or other promises made that expanded upon or were inconsistent with the Franchise Disclosure Document or the Franchise Agreement, the franchisee must write 'NONE' in their own handwriting and initial it. Similarly, if there are no contingencies, prerequisites, or reservations with respect to any matter, the franchisee must also write 'NONE' in their own handwriting and initial it. This requirement emphasizes that the franchisee is fully aware of and agrees with the terms and conditions outlined in the Franchise Disclosure Document and Franchise Agreement.
The use of handwriting serves as a verification method, ensuring that the franchisee has personally addressed and acknowledged specific statements within the document. This practice is intended to reinforce the franchisee's understanding of their obligations, rights, and the risks associated with investing in a Craters & Freighters franchise. It also provides Craters & Freighters with a documented assurance that the franchisee has not been subjected to any undue influence or misrepresentation during the franchise sales process. This measure helps protect both the franchisee and Craters & Freighters by minimizing potential disputes or legal challenges that may arise later.