What standards and criteria must a Craters & Freighters franchisee meet to be eligible for a Successor Term?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
s to bring the Franchised Business at its substituted premises into full compliance with the then-current specifications and standards before the expiration of the Initial Term.
- 2.2.5 Franchisee meets all of Franchisor's then-current standards and criteria for a franchisee entering the System.
- 2.2.6 Franchisee's Franchised Business meets or exceeds Franchisor's thencurrent financial performance targets for renewing franchisees, including but not limited to, those relating to Adjusted Gross Sales per capita within the Territory, year-to-year growth in Adjusted Gross Sales, and servicing metrics throughout the Territory.
- 2.2.7 Franchisee has executed a general release, in a form prescribed by Franchisor, of any and all claims against Franchisor, Franchisor's Affiliates, and subsidiaries and their respective officers, directors, agents, shar
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, several criteria must be met to be eligible for a Successor Term. The franchisee must meet all of Craters & Freighters' then-current standards and criteria for a franchisee entering the System. This indicates that the franchisee will be evaluated against the same benchmarks as a new franchisee, ensuring consistent quality and adherence to brand standards across the Craters & Freighters system.
In addition, the franchisee's Craters & Freighters Franchised Business must meet or exceed Craters & Freighters' then-current financial performance targets for renewing franchisees. These targets include, but are not limited to, those relating to Adjusted Gross Sales per capita within the Territory, year-to-year growth in Adjusted Gross Sales, and servicing metrics throughout the Territory. This requirement emphasizes the importance of financial health and growth for the franchisee's business, ensuring that only successful and well-performing locations are granted a renewal.
Furthermore, the franchisee must execute a general release, in a form prescribed by Craters & Freighters, of any and all claims against Craters & Freighters, Craters & Freighters' Affiliates, and subsidiaries and their respective officers, directors, agents, shareholders, and employees. This release protects Craters & Freighters from potential legal liabilities. Lastly, the franchisee must pay Craters & Freighters a successor fee of $5,000. Meeting these conditions, along with providing timely notice of intent to renew, allows the franchisee to be considered for a Successor Franchise Agreement.