Does a transfer of a Craters & Freighters franchise need to comply with applicable laws and regulations?

According to the 2025 Craters & Freighters Franchise Disclosure Document, franchisees must handle customer complaints, requests for refunds, and adjustments in a manner consistent with applicable laws and regulations. This means that when dealing with customers, a Craters & Freighters franchisee must adhere to all relevant legal requirements.

This obligation ensures that the franchisee operates ethically and legally, protecting both the customer and the brand's reputation. It also highlights the importance of staying informed about current laws and regulations that could impact customer service and business operations.

For prospective franchisees, this underscores the need to understand and comply with all applicable laws, which may require seeking legal counsel or additional training to ensure adherence. Furthermore, in California, the FDD states that you must sign a general release of claims if you transfer your franchise and that California Corporations Code Sections 31512 voids a waiver of your rights under the Franchise Investment Law (California Corporations Code Sections 31000 through 31516.) Business and Professions Code Section 200010 voids a waiver of your rights under the Franchise Relations Act (Business and Professions Code Sections 20000 through 20043).

Therefore, while the FDD does not explicitly state that a transfer needs to comply with applicable laws, the need to adhere to laws and regulations in handling customer issues suggests that all aspects of the business, including transfers, should be conducted in accordance with legal requirements.