What constitutes a curable default that could lead to termination of a Cr3 American Exteriors franchise?

According to the 2025 Cr3 American Exteriors FDD, a curable default can occur if a franchisee fails to adhere to the obligations regarding participation in the actual operation of the franchise business. Unless Cr3 American Exteriors approves the employment of an on-site general manager, the franchisee (if an individual) or a principal owner, officer, director, or employee approved by Cr3 American Exteriors (if a legal entity) must actively participate in the operation of the franchise. They must also devote as much time as reasonably necessary for its efficient operation.

If a general manager is approved, they must be the contact for the franchise, have full decision-making authority, and agree to confidentiality and non-competition terms. The franchisee must obtain written approval for any general manager and ensure they complete the initial training program. The use of a general manager does not relieve the franchisee of their obligations under the Franchise Agreement.

Failure to meet these obligations is considered a default under the Franchise Agreement. To protect the integrity of the Cr3 American Exteriors brand and franchise system, the company may temporarily service and manage all client accounts of the business until the franchisee corrects the default. This means that if a franchisee does not actively participate as required or fails to properly oversee their general manager, Cr3 American Exteriors can step in to manage the business temporarily until the issue is resolved.