Does Cr3 American Exteriors place any restrictions on the customers to whom I, as a Cr3 American Exteriors franchisee, may offer services?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
products we require or have approved from time to time. You must not offer or sell any products or perform any services that we have not authorized.
You may offer your services to any customers consistent with your territorial rights.
You must offer all services that we designate as required for all franchisees. Our System Standards may regulate required or authorized Products and Services. We have the right to change or add new or additional Products and Services that you must offer at your CR3 American Exteriors Franchise. There are no restrictions or limitations on our right to do so.
You will not, during the duration of the Franchise Agreement and for a period of two (2) years after expiration or termination of the Franchise Agreement, in the Territory or within twenty-five (25) miles of the boundaries of the Territory ("Restricted Market"), provide or offer to provide prospective clients services of a similar kind or nature ("Restricted Activities"). For the avoidance of doubt, Restricted Activities include directly or indirectly owning, managing, or providing services to a third party that sells offers or provides a similar service as your Franchised Business. This restriction applies even if you sell your Franchise Business.
You must operate the Franchised Business in strict conformity with all applicable federal, state, and local laws, ordinances, and regulations.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 44)
What This Means (2025 FDD)
According to Cr3 American Exteriors' 2025 Franchise Disclosure Document, franchisees may offer services to any customers consistent with their territorial rights. However, during the term of the Franchise Agreement and for two years after its expiration or termination, a franchisee is restricted from providing similar services within their territory or within 25 miles of its boundaries. This restriction applies even if the franchisee sells their franchise business. These activities are termed "Restricted Activities" and include directly or indirectly owning, managing, or providing services to a third party that offers similar services as the franchised business.
This means that while you can generally solicit any customer within your designated territory, you cannot target customers outside of it. Furthermore, after your franchise agreement ends, you are still bound by a non-compete clause that prevents you from engaging in similar business activities in the same market for a specified period. This is a fairly standard practice in franchising to protect the brand and other franchisees in the system.
It is important to note that franchisees must operate their franchised business in strict compliance with all applicable federal, state, and local laws, ordinances, and regulations. These laws can vary significantly from one jurisdiction to another and may change over time. It is the franchisee's responsibility to stay informed about and adhere to all relevant legal requirements.