What legal violations can lead to the termination of a Cr3 American Exteriors franchise agreement?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
dential Franchise Application to us;
(viii) If you or your principals commit any fraud or misrepresentation in the operation of the Franchised Business;
(ix) If you or your principals materially breach any other agreement with us or any of our affiliates, or threaten any material breach of any such agreement, and fail to cure such breach within any permitted period for cure;
(x) If you or your principals, employees, or affiliates engage in, encourage, or threaten acts of violence, harassment, or intimidation against us, our employees, other franchisees, or customers. For the purposes of this provision, a "threat of violence" includes, but is not limited to, verbal or written threats, physical altercations, or any conduct that would cause a reasonable person to fear for their safety or well-being;
(xi) You fail to pay suppliers an amount exceeding $3,000 for more than sixty (60) days;
(xii) You fail to permit us to inspect or audit your franchise;
(xiii) You intentionally underreport any payment amount on any report to us;
(xiv) If an audit reveals that any payment amount was understand by you on any report to us by more than 2% and you fail to pay all amounts due within five (5) days; or
(xv) If you commit three or more breaches of this Agreement, the Manuals, or any other agreement with us, in any twelve (12) month period regardless of whether such breaches were cured after notice.
8.4. Termination by Us with the Opportunity to Cure
We may terminate this Agreement, if the following conditions remain within thirty (30) days after sending y
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to the 2025 Cr3 American Exteriors Franchise Disclosure Document, there are several actions that can lead to the termination of the franchise agreement. Cr3 American Exteriors can terminate the agreement immediately without an opportunity to cure if the franchisee or their principals, employees, or affiliates engage in acts of violence, harassment, or intimidation against Cr3 American Exteriors, its employees, other franchisees, or customers. This includes any conduct that would cause a reasonable person to fear for their safety or well-being.
Additional causes for immediate termination include failing to pay suppliers an amount exceeding $3,000 for more than sixty (60) days, failing to permit Cr3 American Exteriors to inspect or audit the franchise, intentionally underreporting any payment amount on any report to Cr3 American Exteriors, or understating any payment amount by more than 2% on any report and failing to pay all amounts due within five (5) days after an audit reveals the discrepancy. Committing three or more breaches of the Franchise Agreement, the Manuals, or any other agreement with Cr3 American Exteriors within a twelve (12) month period, regardless of whether such breaches were cured after notice, also constitutes grounds for immediate termination.
Cr3 American Exteriors may terminate the agreement with thirty (30) days' notice and an opportunity to cure if the franchisee violates any other term or condition of the Agreement, the Franchisee Manuals, or any other agreement with Cr3 American Exteriors, or if any amount owing to Cr3 American Exteriors from the franchisee is more than thirty (30) days past due. It is important to note that upon termination or expiration of the agreement, Cr3 American Exteriors has no obligation to return or refund any fees to the franchisee.