Does Cr3 American Exteriors have a right of first refusal to purchase a franchise?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
u receive and desire to accept a written and signed, bona fide offer to purchase or otherwise transfer this Agreement or any interest in it ("Third-Party Offer"), you will grant us the option (the "Right of First Refusal") to purchase the Franchise Business as provided in this Section, pursuant to the same terms and conditions contained in the Third-Party Offer.
B. Notice
Within fourteen (14) days of receipt of a Third-Party Offer, you will forward us a copy of the Third Party Offer and present us with the opportunity to exercise our Right of First Refusal.
C. Option
Upon receipt of the Third Party Offer from you, we will have the right to purchase the Franchise Business or interest in the Franchise Business for the price and upon the same terms and conditions that are contained in the Third-Party Offer. However, we may substitute cash for any non-cash form of payment proposed and we will have sixty (60) days after the exercise of our Right of First Refusal to close the said purchase.
D. Acceptance
If we exercise our Right of First Refusal, then we will notify you in writing within fifteen (15) days from our receipt of the Third-Party Offer from you.
E. Binding
Upon the giving of such notice by us, there will immediately arise between us and you, or your owners, a binding contract of purchase and sale at the price and upon the terms contained in the Third-Party Offer.
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to Cr3 American Exteriors's 2025 Franchise Disclosure Document, Cr3 American Exteriors has a right of first refusal if a franchisee receives an offer from a third party to purchase the franchise business. Within fourteen days of receiving a third-party offer, the franchisee must provide Cr3 American Exteriors with a copy of the offer, giving them the opportunity to match it.
Cr3 American Exteriors has the option to purchase the franchise business under the same terms and conditions as the third-party offer, although they can substitute cash for any non-cash payment forms. Cr3 American Exteriors has 60 days after exercising their right of first refusal to complete the purchase. Cr3 American Exteriors must notify the franchisee in writing within 15 days of receiving the third-party offer if they intend to exercise their right of first refusal.
If Cr3 American Exteriors decides to exercise its right of first refusal, a binding contract is immediately formed between Cr3 American Exteriors and the franchisee (or their owners) based on the terms of the third-party offer. If Cr3 American Exteriors does not exercise its right within the 15-day period, the franchisee is then free to proceed with the transfer to the third party, provided they meet certain conditions. These conditions include satisfying the standard transfer requirements and completing the sale within 90 days of receiving the third-party offer. If the sale is not completed within this 90-day window, Cr3 American Exteriors's right of first refusal remains in effect.