To whom are professional fees (legal & accounting) paid 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 |
|---|---|---|---|---|---|
| Professional Fees-Legal & Accounting (Note 10) | $500 | $3,500 | As Arranged | Before Beginning Operations | Attorney, Accountant |
Note 10: Professional Fees. This estimate is for costs associated with the engagement of professionals such as attorneys and accountants for advisories consistent with the start-up of a Franchised Business. We recommend that you seek the assistance of professional advisors when evaluating this franchise opportunity, this Disclosure Document, and the Franchise Agreement. It is also advisable to consult these professionals to form a new entity for operation of the Franchised Business and review any other contracts that you will enter into as part of the development and operation of your Franchised Business.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 21–24)
What This Means (2025 FDD)
According to Cr3 American Exteriors' 2025 Franchise Disclosure Document, professional fees for legal and accounting services, which range from $500 to $3,500, are paid directly to the attorney or accountant providing the services. These fees are part of the initial investment required to start a Cr3 American Exteriors franchise and are typically arranged and paid before the business begins operations.
Cr3 American Exteriors recommends that prospective franchisees seek professional advice when evaluating the franchise opportunity, the Disclosure Document, and the Franchise Agreement. It is also advisable to consult these professionals to form a new entity for operation of the Franchised Business and review any other contracts that you will enter into as part of the development and operation of your Franchised Business. This suggests that these professional fees cover the costs of legal and accounting consultations necessary for setting up the franchise.
The FDD specifies that these fees are "as arranged," meaning the payment schedule and method are determined between the franchisee and the professional. This provides some flexibility but also requires the franchisee to manage these relationships and payments independently. It is important for prospective franchisees to budget for these costs and engage qualified professionals to ensure they fully understand their legal and financial obligations when starting the Cr3 American Exteriors franchise.
Unlike the initial franchise fee which is paid directly to Cr3 American Exteriors, these professional fees are paid to independent third-party service providers. This is a common practice in franchising, as it allows franchisees to choose their own advisors and ensures that they receive independent counsel.