As a new Cr3 American Exteriors franchisee, what form of agreement must be entered into?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
| Franchisor | may not |
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EXHIBIT B-FRANCHISE AGREEMENT
FRANCHISE AGREEMENT
| Delaware | 001-35588 | 27-3561876 | |
|---|---|---|---|
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
SINGLE UNIT FRANCHISE AGREEMENT
This contract ("Agreement") is between Tectum Franchising LLC d/b/a CR3 American Exteriors ("CR3 American Exteriors", "we", "us", or "our") and the entity and all Signators identified on the signature page, in your personal capacity, (collectively "Franchisee", "you", or "your").
RECITALS
CR3 American Exteriors has developed a system ("Franchise System") to offer, sell, and perform roofing and remodeling services for commercial and residential customers within a defined territory (collectively the "Services"). The Franchise System utilizes prescribed marketing techniques and operating procedures to deliver outstanding service to property owners ("Clients").
We seek to identify and recruit candidates with the ability to deliver outstanding Client service in a defined Territory who are willing to own at least one Franchised Business.
Franchisee seeks to use the Franchise System and the Services to profitably deliver an outstanding Client experience.
For mutual promises expressed in this Agreement, along with other valuable consideration, the receipt of which is acknowledged, CR3 American Exteriors and Franchisee (collectively "the Parties") will be bound as follows:
1. Scope
1.1. Franchise Relationship
A. Grant of Franchise
CR3 America Exteriors grants you the right to operate a company ("Franchised Business") using our System and our Marks to provide Services solely within the geographical boundaries identified in Schedule 1 (the "Territory") by and through the Franchisee Business Entity identified on the Summary Page and signature page of this Agreement (or as a sole proprietor or partnership if there is no business entity), subject to the terms and conditions of this Agreement.
B. Independent Contractors
Your relationship with us is that of an independent contractor. This Agreement does not create a partnership, joint venture, or any other entity between the Parties.
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to the 2025 Cr3 American Exteriors Franchise Disclosure Document, a new franchisee must enter into a "Single Unit Franchise Agreement". This agreement outlines the terms and conditions under which Cr3 American Exteriors grants the franchisee the right to operate a business using their system and marks within a specific territory.
The Single Unit Franchise Agreement specifies that the relationship between Cr3 American Exteriors and the franchisee is that of an independent contractor, and it does not establish a partnership or joint venture. The agreement also details the scope of the franchise, including the franchisee's right to operate within a defined territory and the requirement to use Cr3 American Exteriors's system and marks.
Furthermore, the agreement includes various provisions related to the operation of the franchised business, such as adherence to standards and specifications outlined in the manuals, non-competition covenants, and training requirements. The franchisee is obligated to operate the business in strict conformity with the methods, standards, and specifications prescribed by Cr3 American Exteriors. The agreement also states that the franchisee must attend and successfully complete the initial franchisee training before operating the franchise business.