Craters & Freighters Franchise Company

What is the nature of the 1 pending litigation case, and when was it filed? Does the franchisor anticipate this case will impact franchise operations or renewal policies?

Given the royalty rate of 5.0% is below typical for this category (6.0-10.0%), were there any recent changes to the fee structure, and are there any plans to adjust royalties in the near term?

Why does the transfer rate of 7.7% exceed the typical range of 0.0-5.18%? Are transfers primarily driven by unit sales, retirement, or other specific factors?

The system has experienced zero terminations in the past 3 years. What is the franchisor's typical response to underperforming or non-compliant franchisees, and under what circumstances are the 27 listed termination causes invoked?

The initial term of 15 years is significantly longer than the typical 5-10 year range. What is the rationale for this extended initial commitment, and what flexibility exists for franchisees who wish to exit before the 15-year mark?

The renewal option allows another 15 years, creating a potential 30-year commitment versus the typical 10-20 year range. Are there any material changes to terms, fees, or conditions upon renewal that franchisees should expect?

What specific performance metrics or sales thresholds must be met to qualify for the 15-year renewal option, and are there any circumstances under which renewal would be denied?

Can you provide details on the 5 units that transferred in 2024? Were these transfers approved by the franchisor, and what conditions or fees are associated with the transfer process?

The $15,000 transfer fee and $5,000 renewal fee are material costs. Are these fees negotiable, and are they refundable under any circumstances?

The non-compete clause is 2 years / 10 miles. How is this enforced, and are there exceptions for franchisees who sell their units to qualified buyers?

With 65 total units in the system, what is the geographic distribution, and are there any saturated or underperforming territories where new franchisees should be cautious?

The franchise agreement includes 27 termination causes. Can you provide a summary of the most frequently cited termination causes and examples of recent terminations for context?

Does the franchise offer Item 19 financial performance data, and if not, would the franchisor be willing to provide references to existing franchisees for detailed financial discussions?

Given the pending litigation case, will the franchisor provide details on the opposing party, the claims involved, and the potential financial or operational impact?

The technology fee of $500 is listed separately from royalties. Are there any additional technology or system fees not listed, and what services or platforms does this fee cover?

What support and training does the franchisor provide to help franchisees maintain the exclusive territory and prevent encroachment from non-franchised competitors?

If a franchisee wishes to terminate the agreement before the 15-year initial term expires (outside of default), what are the financial and legal consequences?

Are there any circumstances under which the franchisor would renegotiate the initial 15-year term for an existing or prospective franchisee?