What authority must a general manager have when operating a Cr3 American Exteriors franchise?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 43)
What This Means (2025 FDD)
According to Cr3 American Exteriors's 2025 Franchise Disclosure Document, if a franchisee is approved to employ a general manager, that general manager must have full authority to make decisions on behalf of the franchisee. The general manager must also be able to take actions as Cr3 American Exteriors may require for the operation of the franchised business. Furthermore, the general manager must agree to abide by the terms of confidentiality and non-competition outlined in the Franchise Agreement.
Before hiring a general manager, the franchisee must obtain prior written approval from Cr3 American Exteriors regarding the general manager's qualifications. The general manager must also attend and successfully complete Cr3 American Exteriors's Initial Training program. 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.
The general manager is required to be the main point of contact for the franchise. While the general manager is not required to have an equity interest in the franchise, they cannot have any interest in or business relationship with any business competitor of the franchise. Additionally, the general manager must sign a written agreement to maintain the confidentiality of proprietary information and adhere to the covenants not to compete.