Under what conditions can the Craters & Freighters agreement be treated as expired?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- 20.1 Required Actions. In the event of the termination of this Agreement, whether by reason of default, lapse of time, or other cause, Franchisee must immediately complete all of the following:
- 20.1.1 Payment of Monies Owed. Franchisee must pay to Franchisor, or any Affiliate of Franchisor, as the case may be, all monies owed to Franchisor or such Affiliate(s), respectively, within ten (10) days of the date on which the Agreement was terminated or expired.
- 20.1.2 Discontinue Use of Marks. Franchisee must discontinue the use of the Marks including, but not limited to, all of Franchisor's trademarks, service marks and trade names. Additionally, Franchisee must cease doing business under any name or in any manner that might provide the general public with the impression that Franchisee is operating a Craters & Freighters Franchised Business. At the option of Franchisor, within a reasonable period after the termination or expiration of this
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, the franchise agreement can expire due to the lapse of time. In the event of the expiration of the agreement, the franchisee must take immediate actions.
Specifically, the franchisee is obligated to pay Craters & Freighters, or any of its affiliates, all outstanding monies within ten days of the expiration date. Additionally, the franchisee must immediately discontinue using Craters & Freighters' trademarks, service marks, and trade names, and must cease operating in a manner that suggests they are still part of the Craters & Freighters franchise.
Furthermore, Craters & Freighters has the option to require the franchisee to either destroy or return any physical or electronic materials that bear Craters & Freighters' marks within a reasonable timeframe after the agreement's expiration.