In which states does the State Specific Addendum apply to Cr3 American Exteriors?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
The following State Specific Addendum applies to the Tectum Franchising LLC d/b/a CR3 American Exteriors Disclosure Document and may supersede, to the extent then required by valid applicable state law, certain portions of the Franchise Agreement dated and all related agreements.
The provisions of this State Specific Addendum to Franchise Disclosure Document and Franchise Agreement apply only to those persons residing or operating CR3 American Exteriors LLC in the following states: California, Hawaii, Illinois, Indiana, Maryland, Minnesota, New York, North Dakota, South Dakota, Rhode Island, Virginia, Washington, and Wisconsin.
CALIFORNIA
California Business and Professions Code Sections 20000 through 20043 provide rights to you concerning termination, transfer, or non-renewal of a franchise. If the Franchise Agreement or Agreement contains provisions that are inconsistent with the law, the law will control.
The Franchise Agreement provide for termination upon bankruptcy. This provision may not be enforceable under Federal Bankruptcy Law (11 U.S.C.A. Sec. 101 et. seq.).
The Franchise Agreement contain covenants not to compete which extend beyond the termination of the agreements. These provisions may not be enforceable under California law.
Section 31125 of the California Corporation Code requires the franchisor to provide you with a disclosure document before asking you to agree to a material modification of an existing franchise.
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to the 2025 Cr3 American Exteriors Franchise Disclosure Document, the State Specific Addendum applies to franchisees residing or operating a Cr3 American Exteriors business in the following states: California, Hawaii, Illinois, Indiana, Maryland, Minnesota, New York, North Dakota, South Dakota, Rhode Island, Virginia, Washington, and Wisconsin.
This addendum may modify or supersede certain portions of the standard franchise agreement to comply with the specific laws of these states. For example, the FDD highlights specific modifications for California, noting that certain provisions in the standard agreement regarding termination upon bankruptcy and non-compete covenants may not be enforceable under California law. Additionally, California law requires the franchisor to provide a disclosure document before any material modification to an existing franchise agreement.
For prospective franchisees, this means that the terms of their franchise agreement may differ depending on the state in which they operate. It is crucial to carefully review the State Specific Addendum in conjunction with the standard franchise agreement to understand any variations or legal requirements specific to their state. This ensures compliance with local laws and helps franchisees make informed decisions about their investment. Franchisees in Maryland should also note that the Maryland Securities Commissioner requires a financial assurance, deferring initial fees until pre-opening obligations are met and the outlet is opened.