What is the 'Successor Franchise Agreement' for a Craters & Freighters franchise?

Based on the 2025 Franchise Disclosure Document, a 'Successor Term' is mentioned within the context of the franchise territory granted to a Craters & Freighters franchisee. Specifically, during both the Initial Term and any Successor Term of the agreement, Craters & Freighters (nor its affiliates) will not own, operate, or franchise a fixed location for another franchised business within the franchisee's designated territory. This implies that upon the renewal of the initial franchise agreement, the franchisee's territorial rights remain protected under the same conditions as the original term.

This clause ensures that Craters & Freighters franchisees maintain a degree of exclusivity within their territory, preventing direct competition from other Craters & Freighters outlets during the term of their agreement, including any extensions or renewals. For a prospective franchisee, this provides assurance that their investment and market development efforts within their territory will not be undermined by the franchisor establishing competing outlets nearby. The definition of "Affiliate" is also provided, meaning any person or entity that controls, is controlled by, or is in common control with, Franchisor or Franchisee.

However, the FDD does not provide comprehensive details regarding the conditions, requirements, or process for obtaining a Successor Franchise Agreement. A prospective franchisee should seek clarification from Craters & Freighters regarding the specific terms and conditions for renewing the franchise agreement, including any associated fees, performance criteria, or changes to the agreement that may apply upon renewal.