Is there a prepayment penalty for the Cr3 American Exteriors financing program?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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; |
Source: Item 10 — FINANCING (FDD page 31)
What This Means (2025 FDD)
According to Cr3 American Exteriors's 2025 Franchise Disclosure Document, there is no prepayment penalty associated with their financing program. This means a franchisee can pay off the loan early without incurring any additional fees. This is a beneficial term for franchisees who may experience faster-than-anticipated growth or improved financial stability, allowing them to reduce their debt obligations without penalty.
Cr3 American Exteriors offers financing for the initial franchise fee, potentially covering up to 100% of the amount. The interest rate is fixed at 12% per annum, which includes all finance charges. The repayment period varies, and the loan is secured by the franchised business's assets, including accounts, equipment, furniture, and earnings from any financial services business. Additionally, if the franchisee is an entity, its owners must personally guarantee the debt.
In the event of default, the franchisee is obligated to pay the entire amount due immediately, along with Cr3 American Exteriors's court costs and attorney fees incurred in collecting the debt. Default can also lead to termination of the franchise agreement. Franchisees also waive certain legal rights, including the right to a jury trial and certain exemptions. Cr3 American Exteriors does not currently intend to sell, assign, or factor the debt to a third party.