What is the method of payment for initial training for a Cr3 American Exteriors franchise?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
efore 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 | A
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 method of payment for the initial training fee is "As Incurred." The estimated cost for initial training ranges from $500 to $3,900, and payment is made to third parties. This payment is due as incurred.
This means that as a prospective Cr3 American Exteriors franchisee, you will need to pay for the initial training as the costs arise. The costs associated with initial training are paid to third parties, not directly to Cr3 American Exteriors. It's important to budget for these expenses, keeping in mind the range provided in the FDD. The actual cost will depend on the specifics of the training program and the third-party vendors involved.
It is also important to note that if any in-person training is required, the franchisee is responsible for covering the travel, lodging, meals, and wages for all attendees. This is in addition to the initial training fee. Therefore, franchisees should carefully consider these additional costs when planning for their initial investment.