After termination or expiration of the Craters & Freighters agreement, is the franchisee allowed to give the impression that they are still operating a Craters & Freighters franchised business?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- 20.1.2 Discontinue Use of Marks. Franchisee must discontinue the use of the Marks including, but not limited to, all of Franchisor's trademarks, service marks and trade names. Additionally, Franchisee must cease doing business under any name or in any manner that might provide the general public with the impression that Franchisee is operating a Craters & Freighters Franchised Business. At the option of Franchisor, within a reasonable period after the termination or expiration of this
Agreement, Franchisee must destroy or return to Franchisor any physical copies or electronic versions of items bearing or containing any of the Marks.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, franchisees are prohibited from creating the impression that they are still operating a Craters & Freighters franchise after the termination or expiration of their franchise agreement. Specifically, franchisees must discontinue using Craters & Freighters' trademarks, service marks, and trade names. They must also cease doing business in any manner that might lead the public to believe they are still part of the Craters & Freighters system.
To ensure compliance, Craters & Freighters has the option to require franchisees to either destroy or return any physical or electronic materials bearing Craters & Freighters' marks after the agreement ends. This prevents any potential misuse of the brand's identity and ensures a clear separation between the former franchisee and the Craters & Freighters system.
These measures are typical in franchising to protect the brand's integrity and prevent customer confusion. By enforcing these post-termination obligations, Craters & Freighters aims to maintain consistent brand representation and avoid any association with businesses no longer adhering to its standards.