What is the method of payment for real estate/security deposits for a Cr3 American Exteriors franchise?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure* | Low** | High | Method of payment | When Due | To Whom Payment is to be Made |
|---|---|---|---|---|---|
| Real Estate/Security Deposit (Note 2) | $0 | $5,000 | As Incurred | Before beginning operations | Lessor |
Note 2: Real Estate/Security Deposit. If you are converting an existing business and already own or rent a suitable commercial office/warehouse space of approximately 1,000-1,500 square feet in size (See Item 11), you will not incur an additional expense prior to beginning operations as a CR3 Franchised Business. If you are not converting an existing business, you will need to obtain a suitable space to begin operations unless we agree to defer this requirement in writing. This estimate does not include rent for any time period as no build out is anticipated prior to your opening; however, an estimate for three (3) months of rent is included under "Additional Funds - 3 Months".
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, real estate and security deposits, which range from $0 to $5,000, are paid 'As Incurred' to the Lessor. These payments are due before beginning operations.
If a franchisee is converting an existing business and already owns or rents a suitable commercial office/warehouse space of approximately 1,000-1,500 square feet, they will not incur this additional expense before beginning operations as a Cr3 American Exteriors franchise. However, if the franchisee is not converting an existing business, they will need to obtain a suitable space to begin operations unless Cr3 American Exteriors agrees to defer this requirement in writing.
It is important to note that the estimate provided does not include rent for any time period, as no build-out is anticipated before opening. However, an estimate for three months of rent is included under 'Additional Funds - 3 Months'. Prospective franchisees should consider these factors when estimating their initial investment.