factual

Does the Washington Addendum modify the Cr3 American Exteriors Franchise Disclosure Document?

Cr3_American_Exteriors Franchise · 2025 FDD

Answer from 2025 FDD Document

not be enforceable.

Item 5 of the Disclosure Document and Item 4 of the Franchise Agreement is modified to also provide: "The franchisor defers the collection of all initial fees from Virginia franchisees until the franchisor has completed all its pre-opening obligations."

Washington Addendum to the Franchise Disclosure Document, Franchise Agreement, and Related Agreements

The provisions of this Addendum form an integral part of, are incorporated into, and modify the Franchise Disclosure Document, the franchise agreement, and all related agreements regardless of anything to the contrary contained therein. This Addendum applies if: (a) the offer to sell a franchise is accepted in Washington; (b) the purchaser of the franchise is a resident of Washington; and/or (c) the franchised business that is the subject of the sale is to be located or operated, wholly or partly, in Washington.

    1. Conflict of Laws. In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, chapter 19.100 RCW will prevail.
    1. Franchisee Bill of Rights. RCW 19.100.180 may supersede provisions in the franchise agreement or related agreements concerning your relationship with the franchisor, including in the areas of termination and renewal of your franchise. There may also be court decisions that supersede the franchise agreement or related agreements concerning your relationship with the franchisor. Franchise agreement provisions, including those summarized in Item 17 of the Franchise Disclosure Document, are subject to state law.
    1. Site of Arbitration, Mediation, and/or Litigation. In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation. In addition, if litigation is not precluded by the franchise agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
    1. General Release. A release or waiver of rights in the franchise agreement or related agreements purporting to bind the franchisee to waive compliance with any provision under the Washington Franchise Investment Protection Act or any rules or orders thereunder is void except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel, in accordance with RCW 19.100.220(2). In addition, any such release or waiver executed in connection with a renewal or transfer of a franchise is likewise void except as provided for in RCW 19.100.220(2).
    1. Statute of Limitations and Waiver of Jury Trial. Provisions contained in the franchise agreement or related agreements that unreasonably restrict or limit the statute of limitations period for claims under the Washington Franchise Investment Protection Act, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
    1. Transfer Fees. Transfer fees are collectable only to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
    1. Termination by Franchisee. The franchisee may terminate the franchise agreement under any grounds permitted under state law.
    1. Certain Buy-Back Provisions.

Source: Item 23 — RECEIPTS (FDD pages 53–150)

What This Means (2025 FDD)

According to Cr3 American Exteriors's 2025 Franchise Disclosure Document, the Washington Addendum does modify the Franchise Disclosure Document, the franchise agreement, and all related agreements. The addendum is an integral part of these documents and is incorporated into them. This modification applies if the offer to sell a franchise is accepted in Washington, if the purchaser of the franchise is a resident of Washington, or if the franchised business is to be located or operated, wholly or partly, in Washington.

The Washington Addendum includes specific provisions that address potential conflicts of law, stating that the Washington Franchise Investment Protection Act will prevail in such cases. It also mentions the Franchisee Bill of Rights under RCW 19.100.180, which may supersede provisions in the franchise agreement, particularly concerning termination and renewal rights. Additionally, court decisions may also override the franchise agreement terms regarding the franchisee's relationship with Cr3 American Exteriors.

Furthermore, the addendum modifies specific sections of the Franchise Disclosure Document and the Franchise Agreement. For instance, Item 6 of the Franchise Disclosure Document and Sections 3.1 and Schedule 2 of the agreement are modified such that the minimum monthly royalty fee will only begin if the franchisee opens for business. Section 7 of the Franchise Agreement is also modified to prevent Cr3 American Exteriors from unreasonably withholding consent to transfer the franchise. Section 8.9 is modified to remove language that would prevent a franchisee from using a claim against Cr3 American Exteriors as a defense to their obligations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.