What happens if a Cr3 American Exteriors franchisee does not pass the Initial Training?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
products or perform any services that we have not authorized.
C. Non-Competition Covenants
You will not, during the Term of this Agreement, in the United States or its Territories, directly or indirectly, offer the Approved Products and Services other than through the CR3 American Exteriors Franchised Business.
6.2. Training
A. Initial Training.
You and any General Manager working for you must attend and successfully complete our initial franchisee training before you may operate the Franchise Business. We do not charge for Initial Training, but you must pay for any travel and living expenses to attend. The Initial Training must be completed within sixty days (60) days of signing the Franchise Agreement.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 45–48)
What This Means (2025 FDD)
According to Cr3 American Exteriors's 2025 Franchise Disclosure Document, both the franchisee and any general manager they employ must attend and successfully complete the initial franchisee training before operating the franchise. The training must be completed within 60 days of signing the Franchise Agreement.
If the franchisee fails to adhere to these obligations, it will be considered a default under the Franchise Agreement. To ensure the integrity of the marks and franchise system, Cr3 American Exteriors may temporarily service and manage all client accounts of the business until the franchisee corrects the default.
This means that if a franchisee or their general manager does not successfully complete the initial training, Cr3 American Exteriors has the right to step in and manage the client accounts of the business until the training requirement is met. The franchisee would essentially lose control of the business operations temporarily, highlighting the importance of successfully completing the initial training program.