Is the financing offered by Cr3 American Exteriors guaranteed, or is it discretionary?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
1 Discretionary-We may in our sole discretion provide financing to you.
2 Form-Schedule 7 of the Franchise Agreement contains the form of Promissory Note that you must sign for
us to extend financing to you. 3 Corporate Guarantee- If the franchisee is a corporation, each officer and shareholder of the franchisee must execute a personal guaranty for the note, agreeing to be personally and jointly and severally liable for its repayment. Schedule 7 has the Promissory Note that must be executed. We do not guarantee your notes, leases, or obligations.
4 Intent to Sell-We do not have any past or present practice to sell, assign or discount to any third party, any note, contract or other instrument signed by you, but we reserve the right to do so.
5 Commissions/Rebates-We do not receive any direct or indirect payments or other consideration for placing financing.
Source: Item 10 — FINANCING (FDD page 31)
What This Means (2025 FDD)
According to Cr3 American Exteriors's 2025 Franchise Disclosure Document, any financing offered is at the discretion of the franchisor. The FDD states, "We may in our sole discretion provide financing to you." This means Cr3 American Exteriors is not obligated to provide financing to any franchisee, and the availability of financing can vary.
If Cr3 American Exteriors does offer financing, it may cover all or a portion of the initial franchise fee, potentially up to 100%. The interest rate is 12% per annum, including finance charges, and the repayment period varies. The franchised business, including all accounts, equipment, furniture, assets, and earnings from any financial services business, serves as security. Additionally, a personal guarantee is required, especially if the franchisee is an entity, in which case the owners must personally guarantee the debt.
In the event of default, the franchisee faces 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. While there is no prepayment penalty, the franchisee waives certain legal rights, including the right to a jury trial, homestead and other exemptions, and waivers of presentment, demand, protest, and notice of dishonor. Cr3 American Exteriors states that they do not intend to sell, assign, or factor the debt to a third party and receive no consideration for placing financing.