What financial obligations does a Cr3 American Exteriors franchisee have to Cr3 American Exteriors upon termination or transfer?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
BACKGROUND
The parties are entering into a Franchise Agreement ("Agreement").
As a condition to signing the Franchise Agreement, we have required that you appoint us Attorney in Fact, to take effect upon the expiration or termination of the Agreement, as to the telephone numbers, listings, and advertisements (collectively "Listings") relating to your Franchise.
TELEPHONE NUMBER ASSIGNMENT
Upon expiration or termination of the Agreement for any reason, Franchisee's right of use of the Listings shall terminate. In the event of termination or expiration of the Agreement, Franchisee will pay all amounts owed in connection with the Listings, and to immediately at Franchisor's request,
take any other action as may be necessary to transfer the Listings to Franchisor or Franchisor's designated agent,
install and maintain, at Franchisee's sole expense, an intercept message, in a form and manner acceptable to Franchisor on any or all of the Listings;
disconnect the Listings; and/or
cooperate with Franchisor or its designated agent in the removal or relisting of the Listings.
Franchisor may require Franchisee to "port" or transfer to Franchisor or an approved call routing and tracking vendor all Listings.
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to the 2025 Cr3 American Exteriors Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, a franchisee has several financial obligations. The franchisee is responsible for paying all amounts owed in connection with telephone listings and advertisements related to the franchise.
In the event of a transfer due to death or incapacity, the franchisee's estate must pay all monies owed to Cr3 American Exteriors, including the transfer fee. Additionally, Cr3 American Exteriors is entitled to reimbursement from the franchisee or their estate for reasonable expenses incurred while continuing services until the transfer or termination is complete, plus ten percent of gross revenues for the period in which Cr3 American Exteriors operates or assists in the operation of the franchised business.
These obligations ensure that Cr3 American Exteriors is compensated for outstanding debts and expenses related to the franchise, even after the agreement has ended or been transferred. This is a fairly standard practice in franchising, as it protects the franchisor's financial interests and ensures a smooth transition during termination or transfer.