Does Cr3 American Exteriors have any pending administrative actions alleging a felony?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
OCUMENT. HOWEVER, THE FRANCHISOR CAN NOT USE THE NEGOTIATING PROCESS TO PREVAIL UPON A PROSPECTIVE FRANCHISEE TO ACCEPT TERMS THAT ARE LESS FAVORABLE THAN THOSE SET FORTH IN THIS FRANCHISE DISCLOSURE DOCUMENT.**
2. The following is added at the end of Item 3:
With the exception of what is stated above, the following applies to the franchisor, its predecessor, a person identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark:
- A. No such party has an administrative, criminal or civil action pending against that person alleging: a felony, a violation of a franchise, antitrust, or securities law, fraud, embezzlement, fraudulent conversion, misappropriation of property, unfair or deceptive practices, or comparable civil or misdemeanor allegations.
- B. No such party has pending actions, other than routine litigation incidental to the business, which are significant in the context of the number of franchisees and the size, nature or financial condition of the franchise system or its business operations.
- C. No such party has been convicted of a felony or pleaded nolo contendere to a felony charge or, within the 10-year period immediately preceding the application for registration, has been convicted of or pleaded nolo contendere to a misdemeanor charge or has been the subject of a civil action alleging: violation of a franchise, antifraud, or securities law; fraud; embezzlement; fraudulent conversion or misappropriation of property; or unfair or deceptive practices or comparable allegations.
D. No such party is subject to a currently effective injunctive or restrictive order or decree relating to the franchise, or under a Federal, State, or Canadian franchise, securities, antitrust, trade regulation or trade practice law, resulting from a concluded or pending action or proceeding brought by a public agency; or is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities and Exchange Act of 1934, suspending or expelling such person from membership in such association or exchange;
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to Cr3 American Exteriors' 2025 Franchise Disclosure Document, with the stated exceptions, no administrative, criminal, or civil action is pending against the franchisor, its predecessor, individuals identified in Item 2, or any affiliate offering franchises under the franchisor's principal trademark, alleging a felony. This statement assures prospective franchisees that Cr3 American Exteriors and its related parties are not currently facing legal challenges related to felony allegations.
Furthermore, the disclosure confirms that no party has pending actions, excluding routine litigation incidental to the business, that are significant in the context of the number of franchisees and the size, nature, or financial condition of the franchise system or its business operations. This indicates that Cr3 American Exteriors aims to maintain transparency regarding any legal matters that could impact the franchise system's stability.
Additionally, the disclosure states that no party has been convicted of a felony or pleaded nolo contendere to a felony charge within the 10-year period preceding the application for registration. Nor have they been subject to a civil action alleging violations of franchise, antifraud, or securities law; fraud; embezzlement; fraudulent conversion or misappropriation of property; or unfair or deceptive practices or comparable allegations. This provides further reassurance about the ethical and legal standing of Cr3 American Exteriors and its key personnel.
Finally, no party is subject to a currently effective injunctive or restrictive order or decree relating to the franchise, or under a Federal, State, or Canadian franchise, securities, antitrust, trade regulation or trade practice law, resulting from a concluded or pending action or proceeding brought by a public agency; or is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities and Exchange Act of 1934, suspending or expelling such person from membership in such association or exchange; or is subject to any currently effective injunctive or restrictive order relating to any other business activity as a result of an action brought by a public agency or department, including, without limitation, actions affecting a license as a real estate broker or sales agent. This comprehensive statement aims to assure potential franchisees of the company's compliance with legal and regulatory standards.