Under what condition may a Craters & Freighters franchisee be granted permission to promote and advertise in an Adjacent Territory?

According to the 2025 Craters & Freighters Franchise Disclosure Document, a franchisee may be granted permission to promote and advertise in an unsold territory adjacent to their own, referred to as an "Adjacent Territory." However, this permission is not guaranteed and is at the sole discretion of Craters & Freighters. This means that even if a franchisee desires to expand their marketing efforts into a neighboring area, Craters & Freighters ultimately decides whether or not to allow it.

If Craters & Freighters grants permission for a franchisee to promote and advertise in an Adjacent Territory, the franchisee must agree to certain conditions. Specifically, if the Adjacent Territory is later awarded to another Craters & Freighters franchisee, the original franchisee must cease all promotional and advertising activities in that territory. They must also return all customer data and prospect information related to the Adjacent Territory to Craters & Freighters. Furthermore, the franchisee must stop providing products and services to customers located in the Adjacent Territory.

This policy ensures that Craters & Freighters maintains control over its territories and can avoid conflicts between franchisees. It also protects the interests of the franchisee who eventually acquires the rights to the Adjacent Territory. For a prospective franchisee, this means that any expansion into adjacent areas is contingent on Craters & Freighters' approval and can be revoked if the territory is later franchised to someone else. Therefore, franchisees should focus primarily on developing their assigned territory and not rely on the possibility of expanding into adjacent ones.