Is Cr3 American Exteriors' approval required for a franchisee's site selection?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
Site Selection. We do not provide site selection services. However, we may give guidance regarding site selection. You will need to lease approximately 1,000-1,500 square feet of separate commercial office/warehouse or flex space for your equipment, supplies, and inventory. We must approve any site you select before you sign a lease for that location. We do not select the site. We will typically approve or disapprove a proposed site within 14 days of your submission to us of the information required by us on the proposed site. Any proposed site within your Territory will be deemed approved if we do not approve or disapprove within 30 days. If you do not locate a site to begin operations within 4 months of signing the franchise agreement, we may, in our sole discretion: (1) allow more time; (2) terminate the Franchise Agreement without any refund to you; or (3) require you to immediately begin making monthly payments of an amount equal to the Minimum Monthly Royalty Fee. (Franchise Agreement, Section 3.1).
We consider the following factors when reviewing a proposed site: (i) population density, (ii) income levels, (iii) demographics, (iv) competition, (v) visibility, (vi) accessibility, (vii) traffic, (viii) size, (ix) condition and character, (x) parking, and (xi) available signage.
We do not generally own the premises and lease it to you and we do not provide assistance with your lease or purchase negotiation.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 32–37)
What This Means (2025 FDD)
According to Cr3 American Exteriors' 2025 Franchise Disclosure Document, while the company does not provide site selection services, franchisees must obtain approval from Cr3 American Exteriors for their chosen site before signing a lease. Cr3 American Exteriors may offer guidance regarding site selection, but the responsibility of finding a suitable location falls on the franchisee. Franchisees are expected to lease commercial office/warehouse or flex space, approximately 1,000-1,500 square feet in size, for their equipment, supplies, and inventory.
Cr3 American Exteriors will typically approve or disapprove a proposed site within 14 days of receiving the required information from the franchisee. However, if the proposed site is within the franchisee's territory, approval is assumed if Cr3 American Exteriors does not respond within 30 days. Cr3 American Exteriors considers factors such as population density, income levels, demographics, competition, visibility, accessibility, traffic, size, condition and character, parking, and available signage when reviewing a proposed site.
If a franchisee fails to secure a site and begin operations within 4 months of signing the franchise agreement, Cr3 American Exteriors has the discretion to either grant an extension, terminate the agreement without a refund, or require the franchisee to immediately start paying the Minimum Monthly Royalty Fee. Cr3 American Exteriors does not assist with lease negotiations or purchase of the premises, and franchisees are responsible for conforming the premises to local ordinances and building codes, as well as obtaining necessary permits and handling construction or remodeling.