Can the franchisor's business judgment be limited or superseded for Cr3 American Exteriors?

According to the 2025 Cr3 American Exteriors FDD, the franchisor's business judgment may be limited or superseded in certain circumstances, specifically in Washington state. The FDD states that provisions in the franchise agreement that allow Cr3 American Exteriors to exercise discretion based on its reasonable business judgment could be limited or superseded by Washington state law (RCW 19.100.180(1)). This law requires the parties to deal with each other in good faith.

This means that while the franchise agreement might grant Cr3 American Exteriors some latitude in making business decisions, this discretion is not absolute in Washington. The "good faith" clause in Washington law could be interpreted to mean that Cr3 American Exteriors must act fairly and reasonably towards its franchisees, and cannot use its business judgment to unfairly disadvantage them.

For a prospective Cr3 American Exteriors franchisee in Washington, this provides some protection against potentially arbitrary or self-serving decisions by the franchisor. However, it's important to note that this limitation or superseding of business judgment is specific to Washington state law. Franchisees in other states may not have the same protection. It would be prudent for potential franchisees to seek legal counsel to fully understand their rights and obligations under both the franchise agreement and applicable state laws.