Is a Cr3 American Exteriors General Manager required to have an equity interest in the franchise?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
You must operate the Franchise Business personally, unless you submit to us a General Manager who attends and successfully completes our initial Franchisee training course, and who is not later disapproved by us; however, you will be responsible to ensure that the General Manager fulfills all your responsibilities under this Agreement. Delegation of tasks to a General Manager does not reduce any liability that you may have under this agreement.
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 select someone to manage your Franchised Business on a
temporary basis until you cure the default. We do not require that the General Manager have an equity interest in your franchise, but he or she cannot have any interest in or business relationship with any business competitor of the Franchised Business and must sign a written agreement to maintain confidential the proprietary information described in Item 5.1 and conform with the covenants not to compete.
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to Cr3 American Exteriors's 2025 Franchise Disclosure Document, a General Manager is not required to have an equity interest in the franchise. However, if the franchisee chooses to employ a General Manager, that manager must attend and successfully complete the initial franchisee training course. The franchisor also retains the right to disapprove of any General Manager.
While a General Manager is not required to have equity in the Cr3 American Exteriors franchise, they cannot have any interest in or business relationship with any business competitor of the Franchised Business. Additionally, the General Manager must sign a written agreement to maintain the confidentiality of proprietary information and conform to non-compete covenants.
Even if a franchisee employs a General Manager, the franchisee remains responsible for ensuring that the General Manager fulfills all responsibilities under the Franchise Agreement. The franchisee also retains all liability under the agreement, even when tasks are delegated to a General Manager. If the franchisee fails to adhere to their obligations, Cr3 American Exteriors may select someone to manage the Franchised Business on a temporary basis until the default is cured.