For Cr3 American Exteriors, what financial statements are provided in the FDD?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
1,411 | | Net Cash Provided by Financing Activities | 30,000 | 28,589 | 51,411 | | Net Change in Cash | 122,747 | 42,705 | 3,549 | | Cash - Beginning of Period | 46,254 | 3,549 - | _ | | Cash - End of Period | $ 169,001 | $ 46,254 | $ 3,549 | | | | | | | | | | | | | | | | | Supplementary Disclosures Of Cash Flows | | | | | Cash Paid For Interest | $ 88 | $ - | $ - | | Cash Paid For Income Taxes | $ - | $ - | $ - |
Notes to the Financial Statements
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization and Nature of Business
Tectum Franchising LLC (hereinafter the "Company") was formed on July 12, 2022 as a Virginia limited liability company for the purpose of offering franchise opportunities and support for entrepreneurs who want to own a franchise location of CR3 American Exteriors, a business that offers, sells, and performs roofing and remodeling services for commercial and residential customers within a defined territory.
Basis of Accounting
The Company uses the accrual basis of accounting, and their accounting period is the 12-month period ending December 31 of each year.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and disclosures at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents
Cash equivalents include all highly liquid investments with maturities of three months or less at the date of purchase. Also included with cash equivalents are deposits in-transit from banks for payments related to third-party credit card and debit card transactions.
Financial Instruments
For certain of the Company's financial instruments, including cash and cash equivalents, accounts receivable, long term notes receivable, accounts payable and accrued expenses, the carrying amounts approximate fair value due to their short maturities.
Accounts Receivab
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to the 2025 FDD, Cr3 American Exteriors' financial statements include information on the company's accounting policies. Specifically, the FDD states that Tectum Franchising LLC, which operates as Cr3 American Exteriors, was formed on July 12, 2022, as a Virginia limited liability company.
The company uses the accrual basis of accounting, with an accounting period of 12 months ending on December 31 each year. The preparation of financial statements requires management to make estimates and assumptions that could affect the reported amounts of assets, liabilities, revenues, and expenses. Cash equivalents include highly liquid investments with maturities of three months or less, as well as deposits in transit from banks for credit and debit card transactions.
For certain financial instruments like cash equivalents, accounts receivable, notes receivable, accounts payable, and accrued expenses, the carrying amounts approximate fair value due to their short maturities. Accounts receivable are recorded for amounts due based on franchise agreements for franchise sales, royalty fees, and other revenues, carried at the original invoice amount less an estimate for doubtful receivables. As of December 31, 2024, Cr3 American Exteriors had accounts receivables of $312,709, which were deemed collectible.