Can Cr3 American Exteriors terminate the Franchise Agreement without cause?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
Exhibit H contains two copies of a Receipt of our Disclosure Document. You must sign, date and deliver one copy of the Receipt Page to us for our records.
EXHIBIT A-STATE SPECIFIC ADDENDA TO THE FRANCHISE DISCLOSURE DOCUMENT AND FRANCHISE AGREEMENT
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.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 45–48)
What This Means (2025 FDD)
Based on the 2025 FDD, it is not possible to determine whether Cr3 American Exteriors can terminate the Franchise Agreement without cause. The excerpts provided do not contain specific clauses outlining the conditions under which Cr3 American Exteriors can terminate the agreement. Item 23 includes addenda that refer to franchisees' rights concerning termination, transfer, or non-renewal of a franchise in California, and states that California law will control if the Franchise Agreement contains provisions inconsistent with the law. However, this only applies to franchisees residing or operating in California.
To fully understand the termination rights and conditions, prospective Cr3 American Exteriors franchisees should carefully review the complete Franchise Agreement, paying close attention to the termination clauses.
It is essential to consult with a franchise attorney to discuss the circumstances under which Cr3 American Exteriors can terminate the Franchise Agreement, including whether termination without cause is permitted and what remedies a franchisee may have in the event of termination.