Are there limitations on transfer fees charged to Cr3 American Exteriors franchisees?

According to the 2025 FDD, Cr3 American Exteriors does charge a transfer fee under specific conditions. If a franchisee wishes to transfer ownership of the rights under the Franchise Agreement, or a majority of the rights under the Franchise Agreement or in an entity holding the agreement, they must pay Cr3 American Exteriors a Transfer Fee. This fee is equal to 20% of the then-current Initial Franchise Fee. Given the initial franchise fee is $40,000, the transfer fee would be $8,000 (20% of $40,000).

However, Cr3 American Exteriors does provide exceptions to this transfer fee. A franchisee will not be charged a Transfer Fee for the transfer of a minority interest in the Franchised Business. Additionally, no fee is charged if the parties to the agreement transfer the agreement into an entity with the same parties who hold the same percentages of shares.

This policy is fairly standard in the franchise industry, as franchisors typically want to ensure they receive compensation when a franchise changes hands, while also allowing for some flexibility in ownership structure without incurring fees. A prospective Cr3 American Exteriors franchisee should consider these transfer conditions carefully, especially if they anticipate changes in ownership during the term of their franchise agreement.