When are insurance costs due 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 Agree |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 21–24)
What This Means (2025 FDD)
According to Cr3 American Exteriors' 2025 Franchise Disclosure Document, insurance costs are due before beginning operations. The FDD outlines that the estimated initial investment for insurance ranges from $2,500 to $5,500, payable to third parties. This cost is categorized as 'As Incurred,' meaning it will be due at the time the expense is incurred.
For a prospective Cr3 American Exteriors franchisee, this means securing the necessary insurance coverage is a prerequisite to commencing business operations. The actual cost will vary based on the insurance carrier's charges, payment terms, and the franchisee's insurance, risk, and payment histories. The lower end of the estimate assumes the franchisee already has an existing annual policy as a conversion business, while the higher end represents a high-end estimate for an annual policy.
It's important to note that Cr3 American Exteriors reserves the right to require franchisees to purchase insurance through an approved vendor or affiliate in the future. Franchisees should factor in the potential for this requirement when budgeting for insurance costs. Furthermore, if a franchisee already owns an existing business with sufficient insurance coverage, they may not incur this expense, provided the coverage meets Cr3 American Exteriors' specifications as outlined in the manuals.