What is the method of payment for vehicles 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 |
|---|---|---|---|---|---|
| Vehicles (Note 5) | $0 | $60,000 | As Incurred | Before beginning operations | Third Parties |
Note 5: Vehicles. We do not require any vehicle used by you to meet specifications regarding year, make, or model. If you already own or rent a vehicle, you will not incur the expense of purchasing a vehicle; however, once you begin operations you will be required to outfit your vehicle with our branding and marks. We have included the estimated cost of branding in the category for Additional Funds – 3 months.
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 vehicles is "As Incurred." The estimated cost for vehicles ranges from $0 to $60,000, and payment is due before beginning operations. Payments are made to third parties.
This means that as a Cr3 American Exteriors franchisee, you will need to pay for any vehicle-related expenses as they arise, rather than in a lump sum upfront to the franchisor. The wide range in cost reflects the possibility that a franchisee may already own or rent a suitable vehicle. If a vehicle needs to be purchased, the cost could reach up to $60,000.
It is important to note that Cr3 American Exteriors does not require any vehicle to meet specific requirements regarding the year, make, or model. However, once operations begin, the franchisee is required to outfit the vehicle with Cr3 American Exteriors' branding and marks. The estimated cost of branding is included in the "Additional Funds – 3 months" category.