To whom are insurance costs paid for a Cr3 American Exteriors franchise?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
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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 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 21–24)
What This Means (2025 FDD)
According to Cr3 American Exteriors's 2025 Franchise Disclosure Document, franchisees make insurance payments to third parties. The estimated initial investment table shows that insurance costs range from $2,500 to $5,500, payable to third parties before beginning operations.
This means a prospective Cr3 American Exteriors franchisee should budget between $2,500 and $5,500 for initial insurance coverage. The actual cost will vary depending on the insurance carrier's charges, payment terms, and the franchisee's insurance, risk, and payment histories. The FDD also notes that Cr3 American Exteriors reserves the right to require franchisees to buy insurance through an approved vendor or affiliate in the future, which could impact costs and payment procedures.
If a franchisee already owns an existing business with sufficient insurance coverage, they may not incur this expense initially. However, they must maintain coverage that meets Cr3 American Exteriors' specifications as outlined in the manuals and also maintain insurance coverage required for the operation of a commercial office space. Franchisees should carefully review Item 8 of the FDD, which provides further details on the required insurance coverages.