About CR3 American Exteriors Franchise
CR3 American Exteriors is a home improvement franchise specializing in exterior renovation services, offering opportunities since 2022.
Each location provides roofing, siding, windows, gutters, and other exterior home improvement solutions to residential customers.
The brand focuses on storm damage restoration and general exterior upgrades, working closely with insurance companies and homeowners.
CR3 American Exteriors Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | The greater of (i) 6.5% of Gross Revenues Collected; or (ii) a Minimum Monthly Royalty Fee of $2,000.00. of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | We do not currently have an advertising fund in place, but at any time the franchisor reserves the right to implement without franchisees consent. If we implement an advertising fund, then you will be required to contribute two percent (2%) of your Gross Revenues per month into our Advertising Fund. | National brand fund |
| Total Investment Range | $73,000 – $188,300 | Includes build-out, inventory, working capital |
The investment range of $73K–$188K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (The greater of (i) 6.5% of Gross Revenues Collected; or (ii) a Minimum Monthly Royalty Fee of $2,000.00.) and marketing fee (We do not currently have an advertising fund in place, but at any time the franchisor reserves the right to implement without franchisees consent. If we implement an advertising fund, then you will be required to contribute two percent (2%) of your Gross Revenues per month into our Advertising Fund.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee (Note 1) | $35,000 | $35,000 |
| Initial Marketing/Advertising (Note 2) | $5,000 | $5,000 |
| Technology and Software Fee (Note 3) | $1,000 | $1,000 |
| Real Estate/Security Deposit (Note 4) | $0 | $5,000 |
| Leasehold Improvements (Note 5) | $3,000 | $10,000 |
| Computer Systems (Note 6) | $0 | $3,000 |
| Vehicles (Note 7) | $0 | $60,000 |
| Initial Equipment (Note 8) | $2,000 | $15,000 |
| Branding, Equipment and Supplies (Note 9) | $500 | $1,000 |
| Certificates, Licenses, and Permits (Note 10) | $0 | $2,500 |
| Insurance (Note 11) | $0 | $3,000 |
| Utility Deposits (Note 12) | $0 | $1,000 |
| Local Brand Optimization (Note 13) | $1,000 | $2,500 |
| Initial Training (Note 14) | $500 | $3,900 |
| Telecommunications Services(Note 15) | $0 | $400 |
| Additional Funds – 3 months (Note 16) | $25,000 | $40,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 20% of the then current Initial Franchise Fee |
| Renewal Fee | Currently, there is no renewal fee. |
| Technology Fee | Our then-current Technology Fee. |
| Audit Fee | Cost of audit plus interest on underpayment and $50 per month late payment. |
| Ongoing Software Fee | Our then-current Software Fee. |
| Late Payment | Currently, 1½% interest per month, or maximum allowed by law. |
| Ongoing Training | You are required to pay your expenses well as your employees’ expenses in attending these programs |
| Credit Card Processing Fee | Then current rate charged by third-party credit card processor. |
| Insufficient Funds Fee | $50 per transaction. |
| Interest | Highest applicable legal rate not to exceed 12% per annum on amounts you owe. |
| Late Fee (general) | The lesser of 12% per annum or the maximum rate permitted by law on any late payments you owe to us |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 30 hours (22 classroom, 8 on-the-job) |
| Classroom Training | 22.00 |
| On-the-Job Training | 8.00 |
| Training Location | Hanover, PA or online, or Your location |
| Additional Training | The franchisor may elect to offer and require franchisees to attend additional training and seminars, either live or electronically. Franchisees are responsible for any travel and living expenses incurred for such training. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | A Territory will normally include a minimum population of approximately 150,000 residents |
| Description | Territories are defined by zip codes, natural, or political boundaries as set forth on Schedule 1 to the franchise agreement. While protected from other franchised or company-owned outlets selling similar services under the same marks, the franchisor or an affiliate reserves the right to use other channels of distribution (e.g., Internet, telemarketing) to solicit customers within the territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Successive terms consistent with the standard term in the then existing model Franchise Agreement |
| Renewal Fee | Currently, there is no renewal fee. |
| Renewal Conditions | To renew, franchisees must notify the franchisor in writing at least 180 days before expiration, sign a new Franchise Agreement along with a general release of claims, and pay any applicable renewal fee (currently none). The new agreement will not contain materially different terms and conditions than the original contract. |
| Transfer Fee | 20% of the then current Initial Franchise Fee |
| Transfer Conditions | Franchisee must be current in monetary obligations and in compliance with the Franchise Agreement. The transferee must meet franchisor criteria, execute the then-current Franchise Agreement, pay the transfer fee, and satisfactorily complete initial training. Franchisee must provide proposed transfer documents, obtain lessor approval, and comply with post-termination provisions. The purchase price and terms must not be overly burdensome to the transferee. The franchisor has a right of first refusal to acquire the business. |
| Termination for Cause | The franchisor can terminate without notice for reasons such as failure to pass initial training, failure to open on time, insolvency, material violation of law, abandonment of business, materially false application, fraud, uncured default of other agreements, failure to pay suppliers over $3,000 for 60+ days, failure to permit inspection/audit, or three or more breaches within 12 months. For other violations or overdue amounts (over 30 days), termination can occur if not cured within 30 days after notice. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term of the franchise, no competition is allowed in the United States and its territories. After termination or expiration, the franchisee may not compete in the Territory or within 25 miles of the Territory (or any other outlet of ours) for 2 years. This restriction applies even if the franchise business is sold. Franchisees are also prohibited from soliciting clients or disparaging the business during the restricted period. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee, or an approved general manager, must actively participate in the actual operation of the business and devote reasonably necessary time. If a general manager is employed, they must have full authority, pass a background check, and successfully complete initial training. The general manager cannot have an interest in or business relationship with any competitor and must sign confidentiality and non-compete agreements. All owners of an entity franchisee must personally sign the Franchise Agreement as a Principal and are personally bound by its terms. |
| Required Suppliers | Franchisees must use specified computer hardware and software, building supplies, equipment, and inventory that meet or exceed industry standards. Vehicles must comply with branding requirements. Insurance must be obtained to franchisor specifications, naming the franchisor as an 'additional insured'. The franchisor is the only approved supplier for its online software system, website services, and training services. |
| Supply Restrictions | All advertising and promotional materials not prepared or previously approved by the franchisor must be submitted for prior written approval within 15 days. Franchisees must use the computer hardware and software specified by the franchisor. Building supplies, equipment, and inventory must meet franchisor-issued specifications and standards. Any motor vehicle must comply with branding requirements. Insurance coverage must meet franchisor specifications, which may exceed state law requirements. Franchisees must obtain a commercial office space of approximately 1,000-1,500 square feet and secure it within 180 days of signing the Franchise Agreement. |
| Franchisor Revenue from Suppliers | We may, but do not currently, derive revenue or other material consideration from required purchases you make from us and our affiliates, as well as purchases or leases made from or by our designated vendors and Approved Alternative Suppliers. Neither we, our Area Representative Franchisees, or our affiliates have ever earned revenue or other material consideration from required purchases or leases by franchisees. |
CR3 American Exteriors Franchise Earnings — Item 19
CR3 American Exteriors does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
CR3 American Exteriors Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
CR3 American Exteriors System Growth
CR3 American Exteriors currently operates 0 franchised locations and 5 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 0 | 0 | 1 |
| 2020 | 4 | 0 | 5 |
| 2021 | 0 | 0 | 5 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by DASH Business Solutions, LLC for year ending December 31.
CR3 American Exteriors Franchise — FAQ
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