What tangible out-of-pocket costs will Craters & Freighters reimburse if a Mark is modified?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
You must modify or discontinue the use of a Mark if we modify or discontinue the use of such Mark. If this happens, we will reimburse you for your tangible out-of-pocket cost of compliance (for example, changing letterhead and business cards). You must not directly or indirectly contest our right to the Marks, trade secrets or business techniques.
Source: Item 13 — TRADEMARKS (FDD pages 32–34)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, if Craters & Freighters modifies or discontinues the use of a Mark, they will reimburse franchisees for tangible out-of-pocket costs of compliance. This includes expenses such as changing letterhead and business cards.
This means that if Craters & Freighters decides to update its logo or branding, franchisees will not be entirely responsible for bearing the costs of updating their materials to reflect the changes. Instead, Craters & Freighters will cover the direct costs of things like new letterhead and business cards.
However, the reimbursement is limited to tangible, out-of-pocket costs. This suggests that it would not cover indirect costs like lost business due to the change, or the time spent implementing the changes. It is important to note that franchisees must modify or discontinue the use of a Mark if Craters & Freighters makes such a change and that franchisees must not contest Craters & Freighters' rights to the Marks.