Who provides the financing for a Cr3 American Exteriors franchise?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 10: FINANCING]
| Item Financed1 | All or a Portion of the Initial Franchise Fee. |
|---|---|
| Source of Financing2 | Us |
| Down Payment | Varies |
| Amount Financed | Up to 100% |
| Interest Rate/Finance Charge | 12% per annum (including finance charges) |
| Period of Repayment | Varies |
| Security Required | The Franchised Business including all accounts, equipment, furniture, and assets and any earnings from any financial services business; Personal guarantee. |
| Whether a Person Other than the Franchisee | If the franchisee is an entity, its owners must |
| Must Personally Guarantee the Debt3 | personally guarantee the debt |
| Prepayment Penalty | None |
| Liability Upon Default | Accelerated obligation to pay the entire amount due, pay our court costs and attorney fees incurred in collecting the debt, and termination of the franchise. |
| Waiver of Defenses or Other Legal Rights | Waiver of right to jury trial; homestead and other exemptions; waiver of presentment, demand, protest, notice of dishonor. |
| Intent to Sell4 | There is no intent to sell, assign or factor the debt to a third party. |
| Consideration for placement of financing5 | None |
[Item 10: FINANCING]
1 Discretionary-We may in our sole discretion provide financing to you.
Source: Item 10 — FINANCING (FDD page 31)
What This Means (2025 FDD)
According to Cr3 American Exteriors's 2025 Franchise Disclosure Document, Cr3 American Exteriors may, at its discretion, provide financing to franchisees. The financing can cover all or a portion of the initial franchise fee, potentially up to 100% of the fee. The source of this financing is Cr3 American Exteriors itself.
The interest rate for this financing is 12% per annum, which includes finance charges. The repayment period varies. As security, Cr3 American Exteriors requires a claim on the franchised business, including all accounts, equipment, furniture, and assets, as well as any earnings from any financial services business. Additionally, a personal guarantee is required, especially if the franchisee is an entity, in which case its owners must personally guarantee the debt.
There is no prepayment penalty for the financing offered by Cr3 American Exteriors. However, default on the loan results in an accelerated obligation to pay the entire amount due, covering Cr3 American Exteriors's court costs and attorney fees incurred in collecting the debt, and potential termination of the franchise agreement. Franchisees must also waive their right to a jury trial, homestead and other exemptions, and rights related to presentment, demand, protest, and notice of dishonor. Cr3 American Exteriors states that they do not intend to sell, assign, or factor the debt to a third party.