What is the estimated range for utility deposits 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.
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 utility deposits ranges from $0 to $1,000. These deposits are paid as incurred, before beginning operations, to suppliers.
Note 11 in Item 7 of the FDD clarifies that these utility deposits may be required by the landlord and utility companies if the franchisee does not already own an existing business with connected utilities. This means that if a prospective Cr3 American Exteriors franchisee is converting an existing business that already has utilities in place, they may not need to pay these deposits.
The need for utility deposits depends on the franchisee's specific circumstances, particularly whether they are starting a new business or converting an existing one. It is important for prospective franchisees to assess their current situation and factor in these potential costs when planning their initial investment.