What is the annual interest rate charged by Cr3 American Exteriors for financing?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
| Item Financed1 | All or a Portion of the Initial Franchise Fee. |
|---|---|
| Source of Financing2 | Us |
| Down Payment | Varies |
| Amount Financed | Up to 100% |
| Interest Rate/Finance Charge | 12% per annum (including finance charges) |
| Period of Repayment | Varies |
| Security Required | The Franchised Business including all accounts, equipment, furniture, and assets and any earnings from any financial services business; Personal guarantee. |
| Whether a Person Other than the Franchisee | If the franchisee is an entity, its owners must |
| Must Personally Guarantee the Debt3 | personally guarantee the debt |
| Prepayment Penalty | None |
| Liability Upon Default | Accelerated obligation to pay the entire amount due, pay our court costs and attorney fees incurred in collecting the debt, and termination of the franchise. |
| Waiver of Defenses or Other Legal Rights | Waiver of right to jury trial; homestead and other exemptions; waiver of presentment, demand, protest, notice of dishonor. |
| Intent to Sell4 | There is no intent to sell, assign or factor the debt to a third party. |
| Consideration for placement of financing5 | None |
Source: Item 10 — FINANCING (FDD page 31)
What This Means (2025 FDD)
According to Cr3 American Exteriors's 2025 Franchise Disclosure Document, the company may offer financing for the initial franchise fee at its discretion. If Cr3 American Exteriors does provide financing, the interest rate is 12% per annum, which includes finance charges. The amount financed can be up to 100% of the initial franchise fee, with the repayment period varying.
To secure the financing, Cr3 American Exteriors requires a security interest in the franchised business, including all accounts, equipment, furniture, assets, and any earnings from any financial services business. Additionally, a personal guarantee is required, especially if the franchisee is an entity, in which case its owners must personally guarantee the debt.
There is no prepayment penalty for paying off the loan early. However, defaulting on the loan can lead to accelerated obligation to pay the entire amount due, covering Cr3 American Exteriors's court costs and attorney fees incurred in collecting the debt, and potential termination of the franchise agreement. Franchisees also waive certain legal rights, including the right to a jury trial, homestead and other exemptions, and waiver of presentment, demand, protest, and notice of dishonor. Cr3 American Exteriors does not intend to sell, assign, or factor the debt to a third party, and they do not receive any consideration for placing financing.