When is the real estate/security deposit due 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' 2025 Franchise Disclosure Document, the real estate/security deposit is due before beginning operations. The estimated cost for the real estate/security deposit ranges from $0 to $5,000. The payment is made to the lessor as incurred.
Note 2 in Item 7 states that 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, you will not incur an additional expense prior to beginning operations as a Cr3 Franchised Business. However, if you are not converting an existing business, you will need to obtain a suitable space to begin operations unless Cr3 American Exteriors agrees to defer this requirement in writing.
It's important to note that the 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". Prospective franchisees should confirm the specific requirements and timing for real estate/security deposits with Cr3 American Exteriors to align with their individual circumstances.