Under what condition is the Transfer Fee charged by Cr3 American Exteriors?

According to Cr3 American Exteriors's 2025 Franchise Disclosure Document, a Transfer Fee is charged when a franchisee wishes to transfer ownership of their rights under the Franchise Agreement. Specifically, the fee applies if a franchisee transfers a majority of the rights under the agreement or a majority of the rights in an entity holding the agreement. The Transfer Fee is 20% of the then-current Initial Franchise Fee.

However, Cr3 American Exteriors does not charge a Transfer Fee under certain circumstances. These include the transfer of a minority interest in the Franchised Business or if the parties to the agreement transfer the agreement into an entity with the same parties who hold the same percentages of shares. Additionally, a transfer to a Controlled Entity, defined as an entity in which the franchisee is the beneficial owner of 100% of each class of voting ownership interest, also does not incur a Transfer Fee.

Furthermore, if a transfer of interest occurs within an entity and only the percentage ownership changes (not the identity of the owners), the Right of First Refusal is not triggered, but the franchisee must still notify Cr3 American Exteriors in writing and pay the applicable Transfer Fee. Each person of the Controlled Entity must also sign the then-current amendment and release forms or Franchise Agreement as required by Cr3 American Exteriors.