What is the estimated range for insurance costs for a Cr3 American Exteriors franchise?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
NT
YOUR ESTIMATED INITIAL INVESTMENT
| Type of Expenditure* | Low** | High | Method of payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|---|
| Initial Franchise Fee (Note 1) | $40,000 | $40,000 | Check or EFT | At signing of Franchise Agreement. | Us |
| Initial Technology Package | $1,000 | $1,000 | Check or | Before Initial | Us |
| Fee | EFT | Training | |||
| Real Estate/Security Deposit (Note 2) | $0 | $5,000 | As Incurred | Before beginning operations | Lessor |
| Leasehold Improvements (Note 3) | $3,000 | $10,000 | As Incurred | Before beginning operations | Third Parties |
| Computer Systems (Note 4) | $0 | $3,000 | As Incurred | Before beginning operations | Third Parties |
| Vehicles (Note 5) | $0 | $60,000 | As Incurred | Before beginning operations | Third Parties |
| Initial Equipment (Note 6) | $2000 | $15,000 | As Incurred | Before beginning operations | Us and/or Third Parties |
| Branding, Equipment and Supplies (Note 7) | $500 | $1,000 | As Incurred | Before beginning operations | Third Parties |
| Certificates, Licenses, and | $0 | $2500 | As Incurred | Before beginning operations | Government |
| Permits (Note 8) | Agents | ||||
| Insurance (Note 9) | $2,500 | $5,500 | As Incurred | Before beginning operations | Third Parties |
| Professional Fees-Legal & Accounting (Note 10) | $500 | $3,500 | As Arranged | Before Beginning Operations | Attorney, Accountant |
| Utility Deposits (Note 11) | $0 | $1,000 | As Incurred | Before beginning operations | Suppliers |
| Type of Expenditure* | Low** | High | Method of payment | When Due | To Whom Payment is to be Made |
| ------------------------------------------ | ------------- | ------------- | ------------------- | -------------------------- | ------------------------------------- |
| Local Brand Optimization (Note 12) | $1,000 | $2,500 | As Incurred | As incurred | Third Parties |
| Initial Training (Note 13) | $500 | $3,900 | As Incurred | As incurred | Third Parties |
| Telecommunications | $0 | $400 | As Incurred | As Incurred | Third Parties |
| Services (Note 14) | |||||
| Additional Funds – 3 months (Note 15) | $26,000 | $68,000 | As incurred | Before and after opening | Employees, Third Parties |
| Total | $77,000 to | o $222,300 |
*The initial fees listed above which are paid to us are nonrefundable as paid. Whether such fees paid to third parties are refundable would depend upon their policies.
**The low-end estimate is for conversion of an existing business offering similar products and services into a CR3 Franchised Business. The low-end estimate will not apply to you if you do not have a similar business to convert. We provide this range because we anticipate as of the Issuance Date that the majority of new franchised outlets will be converting an existing business at the time they sign a Franchise Agreement with us. These figures are estimates and we cannot guarantee that you will not have additional expenses starting your business. Your costs will depend on factors such as: how closely you follow our recommended systems, as well as on your technical, marketing, and general business skills, local economic conditions, the local market for your business, competition, local cost factors, location, and the sales levels achieved by you. We base this estimate upon the years of experience our management team has in the industry.
Note 1: Initial Franchise Fee. The initial franchise fee is $40,000.00 for a single franchise location. We base the table above on the purchase of a single franchise.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 21–24)
What This Means (2025 FDD)
According to Cr3 American Exteriors' 2025 Franchise Disclosure Document, the estimated initial investment for insurance ranges from $2,500 to $5,500. This cost is incurred before beginning operations and is paid to third-party insurance providers.
The FDD notes that if a franchisee already owns an existing business with sufficient insurance coverage, this expense may not be incurred. However, franchisees must obtain and maintain the insurance coverage specified in the Cr3 American Exteriors manuals and satisfy any other insurance-related obligations. Since the business operates from a commercial office space, franchisees must also obtain and maintain the necessary insurance coverage for the office's operation.
The cost of insurance premiums will vary depending on the insurance carrier's charges, payment terms, and the franchisee's insurance, risk, and payment histories. Cr3 American Exteriors retains the right to require franchisees to purchase insurance through an approved vendor or affiliate in the future. The low-end estimate assumes an existing annual policy as a conversion business, while the high-end estimate includes a high-end estimate for an annual policy.
Prospective franchisees should carefully consider their specific circumstances and risk profile when budgeting for insurance costs. It is advisable to consult with insurance professionals to obtain accurate quotes and ensure adequate coverage to meet Cr3 American Exteriors' requirements and protect their business.