Where can the specific details of the franchisee's Territory be found in the Craters & Freighters franchise agreement?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.2 Territory. During the Initial Term and any Successor Term (as such terms are defined below), neither Franchisor nor its Affiliates will own, operate or franchise a fixed location for the operation of any other Franchised Business within Franchisee's territory ("Territory") as set forth in Attachment A to this Agreement. For purposes of this Agreement, "Affiliate" means any person or entity that controls, is controlled by, or is in common control with, Franchisor or Franchisee.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, the specific details of the franchisee's territory are outlined in Attachment A of the franchise agreement. Section 1.2 of the agreement states that neither Craters & Freighters nor its affiliates will operate or franchise a fixed location for another franchised business within the franchisee's designated territory, as defined in Attachment A, during the initial and any subsequent terms of the agreement. This clause ensures that franchisees have a defined area where they can operate without direct competition from other Craters & Freighters outlets.
This territorial protection is subject to the terms and conditions outlined in the agreement, meaning that while Craters & Freighters will not establish another fixed location within the franchisee's territory, other forms of competition or sales channels may exist. For instance, Craters & Freighters retains the right to sell similar products or services through alternate channels of distribution, including to national accounts, within or outside the territory. Additionally, the agreement specifies that the franchise granted is non-exclusive, allowing Craters & Freighters to operate or franchise outlets outside the territory, regardless of their proximity to the territory's boundaries.
Prospective franchisees should carefully review Attachment A to fully understand the scope and boundaries of their territory. It is also important to understand the implications of the non-exclusive nature of the franchise and the rights retained by Craters & Freighters to operate other sales channels. Understanding these details is crucial for assessing the potential market and competition within the designated territory. Franchisees should also inquire about any existing or planned national accounts or alternate distribution channels that may operate within or near their territory to fully gauge the competitive landscape.