Can Craters & Freighters use other proprietary marks within a franchisee's Craters & Freighters territory?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right, among others:
(3) to use and license the use of other proprietary and non-proprietary marks or methods which are not the same as or confusingly similar to our trademarks, whether in alternative channels of distribution or in the operation of a business offering shipping, packaging, crating, receiving and delivery, storage, transportation, moving, logistics, blanket wrap, and freight forwarding services and products, at any location, including within the Territory, which may be similar to or different from the business operated by you;
(5) to acquire and convert to the System operated by us any businesses offering shipping, packaging, crating, receiving and delivery, storage, transportation, moving, logistics, blanket wrap, and freight forwarding services and products, including such businesses operated by competitors or otherwise operated independently or as part of, or in association with, any other system or chain, whether franchised or corporately owned and whether located inside or outside of the Territory; and
(6) to implement multi-area marketing programs which may allow us or others to solicit or sell to customers anywhere (national accounts).
Source: Item 12 — TERRITORY (FDD pages 29–32)
What This Means (2025 FDD)
According to Craters & Freighters's 2025 Franchise Disclosure Document, Craters & Freighters retains the right to use and license other proprietary and non-proprietary marks within a franchisee's territory. These marks must not be the same as or confusingly similar to Craters & Freighters's trademarks. This allows Craters & Freighters to operate businesses offering similar services such as shipping, packaging, crating, receiving and delivery, storage, transportation, moving, logistics, blanket wrap, and freight forwarding services and products, even within a franchisee's exclusive territory, under different branding.
This reservation of rights has significant implications for potential franchisees. While franchisees are granted an exclusive territory, this exclusivity is limited to the Craters & Freighters trademarks. Craters & Freighters can introduce competing services under different brands, potentially impacting a franchisee's market share and revenue within their own territory. This is a common practice in franchising, where franchisors often seek to diversify their offerings and reach different customer segments.
Furthermore, Craters & Freighters also reserves the right to acquire and convert existing businesses to the Craters & Freighters system, even if those businesses are located within a franchisee's territory. These businesses can include competitors or independent operators offering similar services. Craters & Freighters can also implement multi-area marketing programs that may allow them or others to solicit or sell to customers anywhere, including within a franchisee's territory. These rights provide Craters & Freighters with considerable flexibility in managing and expanding its brand presence, but they also introduce a level of competition and uncertainty for franchisees operating within their designated territories.
Prospective franchisees should carefully consider these factors and evaluate the potential impact on their business. It is important to understand the extent to which Craters & Freighters might exercise these rights and how it could affect the franchisee's ability to achieve their financial goals. Franchisees should also inquire about Craters & Freighters's plans for utilizing alternative brands or acquiring competing businesses in the future.