Does Section 9.8(A) of the Cr3 American Exteriors Franchise Agreement apply to franchisees?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 9.8.A of the Franchise Agreement requires the franchisee to consent to a limitation of claims within one year. This provision is inconsistent with Section 51-19-09 of the North Dakota Franchise Investment Law and is hereby amended to state that the statute of limitations under North Dakota law will apply.
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to the 2025 Cr3 American Exteriors Franchise Disclosure Document, Section 9.8.A of the Franchise Agreement, which pertains to the limitation of claims within one year, does apply to franchisees. However, for franchisees in North Dakota, this provision is modified.
Specifically, the FDD states that Section 9.8.A is inconsistent with Section 51-19-09 of the North Dakota Franchise Investment Law. Therefore, the franchise agreement is amended for North Dakota franchisees to state that the statute of limitations under North Dakota law will apply instead of the one-year limitation.
This means that while Cr3 American Exteriors franchisees generally agree to a one-year limitation on claims, franchisees operating in North Dakota are subject to the statute of limitations as defined by North Dakota law, which may provide a longer period to bring claims. Prospective franchisees should be aware of these state-specific modifications and understand how local laws may affect the terms of their franchise agreement.