CR3 American Exteriors Franchise Costs, Fees & FDD

Year Business Began: 2017

Franchising Since: 2023

Headquarters: Virginia Beach, Virginia

Estimated Number of Units: 20

Franchise Description: The franchisor is Tectum Franchising LLC d/b/a CR3 American Exteriors. The franchisor offers qualified individuals the right to operate a business that offers, sells, and performs roofing and remodeling services for commercial and residential customers under the “CR3 American Exteriors” mark. The services provided by the franchised business will include (i) roofing services; (ii) gutter systems; (iii) exterior siding; (iv) window and door replacement; and (v) other products and services that the franchisor may approve and modify from time to time.
Training Overview: The franchisor presently holds initial training in Hanover, PA or online, at its choosing. Initial training currently consists of 22 hours of classroom instruction and 8 hours of on-the-job training. The franchisor requires that franchisees or, in the case of an entity, the principals, attend initial training. The franchisor may elect to offer and require franchisees to attend, either live or electronically, additional training and seminars that it may offer.

Territory Granted: The franchisor will grant franchisees a territory for a specific geographic region that it defines by zip codes, natural, or political boundaries. A territory will normally include a minimum population of approximately 500,000. While franchisees will not receive an exclusive right to provide the products and services within the territory, it will be protected in that the franchisor will not establish a company-owned location or allow another person to establish a franchised outlet selling the same or similar goods or services under the same or similar trademarks or service marks within the territory, with exceptions as stated by the franchisor.

Obligations and Restrictions: Unless the franchisor approves the employment of an on-site general manager to operate the CR3 American Exteriors franchise, franchisees (if the franchisee is an individual) or one of the principal owners, officers, directors, or employees approved by the franchisor (if the franchisee is a legal entity) must actively participate in the actual operation of the franchise, and devote as much of their time as may be reasonably necessary for its efficient operation. If the CR3 American Exteriors franchise is owned by an entity, all owners of the entity must personally sign the Franchise Agreement as a principal. Franchisees must offer, sell, and perform only those services and products the franchisor requires or has approved from time to time. Franchisees must not offer or sell any products or perform any services that the franchisor has not authorized. Franchisees will not, during the duration of the Franchise Agreement and for a period of two years after expiration or termination of the Franchise Agreement, in the territory or within 25 miles of the boundaries of the territory, provide or offer to provide prospective clients services of a similar kind or nature.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. The agreement can be renewed for successive terms if franchisees are in compliance with their Franchise Agreement.

Financial Assistance: The franchisor may in its sole discretion provide financing to franchisees for all or a portion of the initial franchise fee. The franchisor does not guarantee a franchisee’s notes, leases, or obligations.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$40,000	$40,000
Initial Technology Package	$1,000	$1,000
Real Estate/Security Deposit	$0	$5,000
Leasehold Improvements	$3,000	$10,000
Computer Systems	$0	$3,000
Vehicles	$0	$60,000
Initial Equipment	$2,000	$15,000
Branding, Equipment and Supplies	$500	$1,000
Certificates, Licenses, and Permits	$0	$2,500
Insurance	$2,500	$5,500
Professional Fees - Legal & Accounting	$500	$3,500
Utility Deposits	$0	$1,000
Local Brand Optimization	$1,000	$2,500
Initial Training	$500	$3,900
Telecommunications Services	$0	$400
Additional Funds – 3 months	$26,000	$68,000
ESTIMATED TOTAL	$77,000	$222,300

 
Other Fees

Type of Fee	Amount
Royalty Fee	The greater of (i) 6.0% of monthly gross revenue collected or (ii) $2,000 (the minimum royalty fee).
Ongoing Technology Fee	The then-current technology fee (currently $1,000/month).
Advertising Fund	The advertising fund contribution is 1% of the previous month’s gross revenue.
Late Payment	The lower of 12% interest annually, or the maximum allowed by law.
Training	Franchisees are required to pay their expenses as well as their employees’ expenses in attending any initial or ongoing training programs.
Transfer Fee	20% of the then-current initial franchise fee (currently $8,000), subject to state law.
Credit Card Processing Fee	The then-current rate charged by third-party credit card processor.
Insufficient Funds Fee	$50 per transaction.
Interest	Highest applicable legal rate not to exceed 12% per annum on amounts the franchisee owes.
Audit Fee	Cost of audit plus interest on underpayment and $50 per month late payment.

The above information has been compiled from the FDD of CR3 American Exteriors. Year of FDD: 2025.
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