What agreements are included in the three-breach termination rule for Cr3 American Exteriors franchisees?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
- (xv) If you commit three or more breaches of this Agreement, the Manuals, or any other agreement with us, in any twelve (12) month period regardless of whether such breaches were cured after notice.
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to Cr3 American Exteriors' 2025 Franchise Disclosure Document, the franchisor can terminate the franchise agreement if the franchisee commits three or more breaches within a 12-month period. These breaches can involve the Franchise Agreement itself, the Manuals outlining operational standards, or any other agreement between the franchisee and Cr3 American Exteriors.
This "three-breach" rule means that even if a franchisee corrects each individual breach after receiving notice, Cr3 American Exteriors still has grounds for termination if three or more breaches occur within the specified timeframe. This highlights the importance of strict adherence to all agreements and operational guidelines.
For a prospective Cr3 American Exteriors franchisee, this clause underscores the need to fully understand all contractual obligations and operational requirements. Failure to do so could result in the loss of the franchise, even if the franchisee attempts to rectify each issue as it arises. This policy is stricter than some franchise agreements, which may only allow termination for uncorrected or material breaches.