Under what condition is a Craters & Freighters franchisee allowed to own securities in a Competitive Business during the term of the agreement?

According to the 2025 Craters & Freighters Franchise Disclosure Document, a franchisee is permitted to own securities in a Competitive Business under specific conditions during the term of the agreement. A "Competitive Business" is defined as one that offers shipping, packaging, crating, receiving and delivery, storage, transportation, moving, logistics, blanket wrap, or freight forwarding services, or products or services similar to the Franchised Business.

Specifically, a Craters & Freighters franchisee is not prohibited from owning securities in a Competitive Business if those securities are listed on a stock exchange or traded on the over-the-counter market. However, this allowance is conditional: the franchisee's ownership must represent five percent (5%) or less of that class of securities.

This provision allows franchisees to make minor investments in publicly traded competitors without violating the non-compete agreement. However, any significant ownership stake or active involvement in a competing business would still be prohibited without prior written consent from Craters & Freighters.