Under what conditions can a Craters & Freighters franchisee relocate the premises?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.1 Grant. Subject to the terms and conditions of this Agreement, Franchisor grants to Franchisee a non-exclusive license to operate a Franchised Business at the Premises (as such term is defined below) using the System and the Marks for the Initial Term of this Agreement. Franchisee may not operate the Franchised Business at any site other than the Premises without Franchisor's prior written consent. Franchisee must use the Marks and System only in accordance with the terms and conditions of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, a franchisee may not operate their franchised business at any site other than the approved premises without prior written consent from Craters & Freighters. This means that if a franchisee wishes to relocate their business, they must first obtain permission from the franchisor. This requirement ensures that any new location meets Craters & Freighters' standards and does not negatively impact the brand or other franchisees.
This stipulation is common in franchising, as the location of a business can significantly impact its success. Franchisors like Craters & Freighters typically have specific criteria for site selection to ensure adequate visibility, accessibility, and market potential. By requiring franchisees to obtain prior written consent before relocating, Craters & Freighters maintains control over its brand image and protects the interests of all franchisees within the system.
For a prospective Craters & Freighters franchisee, this means that the initial location decision is crucial, and any future relocation plans must be carefully considered and discussed with the franchisor. Failure to obtain written consent before moving could result in a breach of the franchise agreement. It would be prudent for a potential franchisee to discuss the relocation policy in detail with Craters & Freighters during their due diligence process.