Are there any exceptions to the lease default conditions for Craters & Freighters franchisees?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
VIRGINIA
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
In recognition of the restrictions contained in Section 13.1-564 of the Virginia Retail Franchising Act, the Franchise Disclosure Document for Craters & Freighters Franchise Company for use in the Commonwealth of Virginia shall be amended as follows:
Additional Disclosure. The following statements are added to Item 17.h.
Under Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to cancel a franchise without reasonable cause. If any grounds for default or termination stated in the Franchise Agreement does not constitute "reasonable cause," as that term may be defined in the Virginia Retail Franchising Act or the laws of Virginia, that provision may not be enforceable."
CRATERS & FREIGHTERS FRANCHISE COMPANY
WASHINGTON ADDENDUM TO THE FRANCHISE DISCLOSURE DOCUMENT, FRANCHISE AGREEMENT, AND RELATED AGREEMENTS
In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW will prevail.
RCW 19.100.180 may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, there are some state-specific exceptions to lease default conditions for franchisees in Virginia and Washington.
In Virginia, any statement signed by a franchisee at the start of the franchise relationship cannot waive claims under state franchise law, including fraud, or disclaim reliance on franchisor statements. Additionally, the FDD states that it is unlawful for Craters & Freighters to cancel a franchise without reasonable cause, and any termination grounds in the Franchise Agreement that do not constitute "reasonable cause" under Virginia law may not be enforceable.
For Washington franchisees, the Washington Franchise Investment Protection Act may supersede the franchise agreement, especially regarding termination and renewal. Court decisions may also override the franchise agreement in these areas. Therefore, franchisees in these states may have additional protections or have certain clauses of the franchise agreement deemed unenforceable based on state laws.