To whom are utility deposits 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 |
|---|---|---|---|---|---|
| Utility Deposits (Note 11) | $0 | $1,000 | As Incurred | Before beginning operations | Suppliers |
Note 11: Utility Deposits. If you do not already own an existing business with connected utilities, you may be required to pay security deposits required by your landlord and utility or other companies.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 21–24)
What This Means (2025 FDD)
According to Cr3 American Exteriors' 2025 Franchise Disclosure Document, utility deposits, which range from $0 to $1,000, are paid to suppliers. These deposits are typically incurred before beginning operations. Note 11 in Item 7 clarifies that these deposits may be required by the landlord and utility companies if the franchisee does not already own an existing business with connected utilities.
For a prospective Cr3 American Exteriors franchisee, this means that you may need to budget up to $1,000 for utility deposits when starting your franchise. This cost is in addition to other initial investments such as the franchise fee, technology package, and leasehold improvements. If you are converting an existing business that already has utilities in place, you may not need to pay these deposits.
It is important to factor in these potential utility deposits when estimating your total initial investment. The actual amount will depend on the requirements of your landlord and the utility companies in your area. As with many of the initial costs, the FDD recommends new franchisees seek professional advice to ensure they are adequately prepared for the financial obligations of starting the franchise.