What agreements must a general manager abide by when operating a Cr3 American Exteriors franchise?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless we approve your employment of an on-site general manager to operate your CR3 American Exteriors Franchise, you (if you are an individual) or one of your principal owners, officers, directors, or employees approved by us (if you are a legal entity) must actively participate in the actual operation of the franchise, and devote as much of your time as may be reasonably necessary for its efficient operation. If we agree to your employment of a general manager to supervise the day-to-day operation of your franchise, then the general manager will be the contact for the franchise, must have full authority to make decisions on your behalf and take actions as we may require in the operation of the Franchised Business and agree to abide by the terms of confidentiality and non-competition in the Franchise Agreement. You must not hire any general manager without our prior written approval of his or her qualifications. Each general manager and successor general manager must attend and successfully complete our Initial Training program for your franchise. The use of a general manager in no way relieves you of your obligations to comply with the Franchise Agreement and to ensure that your CR3 American Exteriors Franchise is operated properly.
If you fail to adhere to the above obligations, such failure will be deemed a default under the Franchise Agreement and, to ensure the continued integrity of the Marks and franchise system generally, we may service and manage all client accounts of the business on a temporary basis until you cure the default. We do not require that the general manager have an equity interest in your franchise, but he or she cannot have any interest in or business relationship with any business competitor of your franchise, and must sign a written agreement to maintain confidential the proprietary information described in Item 14 and conform with the covenants not to compete
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 43)
What This Means (2025 FDD)
According to the 2025 FDD, if Cr3 American Exteriors approves a franchisee's employment of a general manager, that general manager must agree to certain terms. The general manager will be the primary contact for the franchise and must have the authority to make decisions and take actions required by Cr3 American Exteriors for the franchise's operation.
Specifically, the general manager must agree to abide by the confidentiality and non-competition terms outlined in the Franchise Agreement. Furthermore, the general manager cannot have any interest in or business relationship with any business competitor of the franchise and must sign a written agreement to maintain the confidentiality of proprietary information and conform to the covenants not to compete.
Additionally, the franchisee must receive prior written approval from Cr3 American Exteriors regarding the general manager's qualifications. Each general manager and successor must also attend and successfully complete the Initial Training program for the franchise. It is important to note that employing a general manager does not relieve the franchisee of their obligations to comply with the Franchise Agreement and ensure the proper operation of the Cr3 American Exteriors franchise.