What are the three triggering events that start the post-term competition restriction period for Craters & Freighters?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
For a period of two (2) years after (a) Restricted Person's relationship with Franchisee ends; (b) the expiration or termination of the Franchise Agreement; or (c) the approved transfer of the Franchise Agreement to a new franchisee, whichever occurs first, Restricted Person will not, without Franchisor's consent, directly or indirectly (such as through an affiliate or a family member) perform any services for, consult for, engage in, acquire, lend money to, extend credit to, have any interest in, or be employed as an officer, director, executive, or principal of any Competitive Business at or within the following areas: (i) at the Premises of the Franchised Business; (ii) within the Territory granted to Franchisee under the Franchisee Agreement; or (iii) within a radius of ten (10) miles of (a) the Premises of the Franchised Business, or (b) the premises of any other Craters & Freighters Franchised Business or any Craters & Freighters company-owned or Affiliate-owned outlet then-existing as of the date of the expiration, transfer, or termination of the Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, the post-term competition restriction period is triggered by three events. The two-year restriction begins after (a) the Restricted Person's relationship with the franchisee ends, (b) the expiration or termination of the Franchise Agreement, or (c) the approved transfer of the Franchise Agreement to a new franchisee, whichever occurs first.
During this two-year period, the Restricted Person is prohibited from engaging in any Competitive Business without Craters & Freighters's consent. This includes performing services for, consulting for, engaging in, acquiring, lending money to, extending credit to, having any interest in, or being employed as an officer, director, executive, or principal of any Competitive Business. The restrictions apply specifically to (i) the Premises of the Franchised Business, (ii) the Territory granted to the Franchisee, or (iii) within a ten-mile radius of the Franchised Business or any other Craters & Freighters outlet.
These restrictions are acknowledged by the Restricted Person as fair and reasonable, and not the result of any overreaching or coercion. Should a court find any of the restrictions unenforceable due to scope, geographic area, type of business activity, or length of time, the Restricted Person agrees to comply with any lesser restriction deemed enforceable by the court. Craters & Freighters also has the right to initiate legal proceedings to enforce the agreement, and if successful, the Restricted Person is responsible for reimbursing Craters & Freighters for all enforcement costs, including attorney's fees.