What constitutes a material violation of the Cr3 American Exteriors Franchise Agreement in Indiana?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Item 17, "Renewal, Termination, Transfer and Dispute Resolution," is supplemented, by the addition of the following:
- A. Indiana Code 23-2-2.7-1(7) makes unlawful unilateral termination of a franchise unless there is a material violation of the Franchise Agreement and termination is not in bad faith.
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to the 2025 Cr3 American Exteriors Franchise Disclosure Document, Indiana Code 23-2-2.7-1(7) states that a Cr3 American Exteriors franchise cannot be unilaterally terminated unless there is a material violation of the Franchise Agreement, and the termination is not made in bad faith. This addendum applies specifically to those operating a Cr3 American Exteriors franchise in Indiana.
This means that Cr3 American Exteriors must have valid grounds, based on the franchisee's actions or failures to act, to terminate the agreement. The violation must be significant enough to justify ending the franchise relationship. Furthermore, Cr3 American Exteriors must demonstrate that the termination is not motivated by malice, discrimination, or other unfair practices.
This Indiana code offers franchisees some protection against arbitrary or unfair termination by Cr3 American Exteriors. It ensures that the franchisee can only be terminated for legitimate, serious breaches of the agreement and that Cr3 American Exteriors must act in good faith when considering termination.