Upon termination of the Craters & Freighters Franchise Agreement, what must the franchisee immediately discontinue using?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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
Agreement, Franchisee must destroy or return to Franchisor any physical copies or electronic versions of items bearing or containing any of the Marks.
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, upon termination of the Franchise Agreement, the franchisee must immediately discontinue using Craters & Freighters' marks, including all trademarks, service marks, and trade names. The franchisee must also stop doing business under any name or in any manner that could give the public the impression that they are still operating a Craters & Freighters franchised business.
Additionally, at Craters & Freighters' option, the franchisee must destroy or return any physical or electronic copies of items bearing or containing any of the marks within a reasonable period after termination or expiration of the agreement. This ensures that the franchisee no longer benefits from the brand's reputation and goodwill after the agreement ends.
This requirement is standard in franchising to protect the integrity of the brand and prevent confusion among customers. It is a critical component of the termination process, ensuring a clean break between the franchisee and the Craters & Freighters system. Franchisees should be aware of these obligations and plan accordingly when exiting the franchise system.