CR3 American Exteriors Franchise — Roofing Service

CR3 was founded by seasoned franchise strategists in collaboration with successful roofing and exterior remodeling contractors.

CR3 was formed to enable small-to-midsize contractors to capitalize on a proven franchise model that really works. It is essential for establishing a powerful national brand that will make your operation a household name. As an Independent Contractor with CR3, you are our top priority. We are committed to supporting you with all the education, tools, and resources you need for your business to thrive.

To accomplish this, we provide access to experienced support in:

• Tested marketing strategies, local marketing consulting, and access to outstanding marketing collateral
• Finance management and business strategy
• Technology and software training
• Set-up of office systems and day-to-day operations
• Knowledge of CR3’s business systems, culture, and team development
• Executive Coaching to support you as the business grows
• Ongoing training and development

Detailed franchise description

We offer the opportunity to operate a Franchised Business that offers, sells, and performs roofing and remodeling services for commercial and residential customers within a defined territory (the “Approved Location”). The services provided by the Franchised Business will include:

• roofing services;
• gutter systems;
• exterior siding;
• window and door replacement;
• and other products and services that we may approve and modify from time to time (the “Approved Products and Services”).

We are a customer-centric company built on quality, integrity, and respect. We require each Franchised Business to operate according to our proprietary business methods and system (the 18571810.1 1 “System”) while using CR3 American Exterior’s marks, logos, trade dress, (the “Marks”).

We continue to develop, use, and control the Marks in public to represent the System’s standards of quality, integrity, and respect. We offer the opportunity to operate a Franchised Business through a Franchise Agreement. Our standard Franchise Agreement is attached to this Disclosure Document as Exhibit B (“Franchise Agreement”).

Success story

When CR3 American Exteriors was founded, the goal was simple: to provide exceptional exterior home services with integrity, quality, and customer satisfaction at the forefront. Over the years, that mission has turned into a proven success story, transforming not only homes but also the communities it serves. CR3 American Exteriors began as a small family-run business in 2017. Initially, the company focused primarily on roofing services. In the early years, the company faced the usual challenges of growing a business: building a client base, ensuring quality work, and competing with larger, established firms. But what set CR3 apart was its unwavering commitment to craftsmanship and customer service. The founders understood that the key to long-term success wasn’t just about completing a project, it was about building lasting relationships with clients.

One of the core values that helped CR3 American Exteriors grow was its focus on quality. From roofing to siding, windows, and gutters, each project was treated with the utmost care and attention to detail. Customers quickly began to recognize the difference in service. What started as a handful of local clients soon grew through word-of-mouth referrals as happy homeowners shared their experiences.

As the company expanded its service offerings, it also began to invest in the latest materials and technologies. Whether installing energy-efficient windows or eco-friendly roofing solutions, CR3 stayed ahead of industry trends to ensure its clients received the best possible value.

The company’s commitment to honesty and transparency became a cornerstone of its reputation. CR3 American Exteriors set itself apart from competitors by always providing clear, upfront pricing, detailed project timelines, and open communication with homeowners. As a result, it earned the trust of clients, many of whom returned for additional projects and referred to friends and family. In a market where some contractors gained a bad reputation for shortcuts or unclear pricing, CR3 American Exteriors built a foundation of trust by always doing what they said they would and doing it well.

By 2015, CR3 American Exteriors had expanded its operations, taking on larger projects while maintaining its commitment to quality and customer service. The company began offering complete home exterior renovations, including full roof replacements, siding installation, and custom window designs, all tailored to the individual needs of each client.

In 2019, CR3 reached a major milestone by completing its 5,000th project. This success was a testament not only to the growing demand for its services but also to the hard work and dedication of its team.

Today, CR3 American Exteriors continues to thrive under the leadership of its founders, now joined by a team of skilled professionals dedicated to upholding the company’s values. As they look to the future, they remain focused on expanding their services while maintaining the same level of excellence that has been the hallmark of their success. With a reputation for quality, a commitment to customer satisfaction, and a community-driven mindset, CR3 American Exteriors is well-positioned for continued growth. Homeowners trust CR3 not only for their exterior renovations but also for the peace of mind that comes with knowing they are working with a company that truly cares about their home.

From its humble beginnings to becoming a trusted leader in home exterior services, CR3 American Exteriors’ story is one of perseverance, dedication, and unwavering commitment to quality. With a focus on customer satisfaction, top-notch craftsmanship, and strong community ties, CR3 continues to build not just homes, but lasting relationships that will ensure its success for years to come.

Franchise offer and territory

We will grant you a Territory defined by geographic boundaries, typically including a population of about 500,000 residents. This Territory is not exclusive, and you may face competition from other franchisees, company-owned locations, or other channels. However, we will not allow another outlet to operate within your Territory selling similar goods or services under the same trademarks, except as described in thе agreement.

While your Territory isn’t fully exclusive, you may accept clients outside of it through networking or referrals. You cannot actively solicit clients outside your Territory through channels like the internet or telemarketing. If over 25% of your revenue comes from outside your Territory in a year, you may need to purchase another franchise or expand your current Territory.

We may approve the relocation of your business or the opening of additional outlets within your Territory, depending on circumstances. However, we do not grant options or rights of first refusal for additional franchises.

For example, we, our parent, and our affiliates have the right to:

• use other channels of distribution, such as the Internet, catalog sales, telemarketing, or other direct marketing sales, to solicit or accept customers within your Territory using our principal trademarks (or another trademark) without any compensation to you, however, we will direct inquiries for Services from within your Territory to your Franchised Business;
• to implement cross-territorial protocols and other guidelines applicable to such situations as group advertising buys by multiple franchisees which may extend into multiple territories, solicitation of orders of individuals who may reside in one Territory, yet work in another, and other cross-territorial situations;
• to establish and operate, and grant rights to others to establish and operate a Franchised Business or similar businesses at any locations outside of the Territory and on any terms and conditions we deem appropriate;
• to own, develop, acquire, be acquired by, merge with, or otherwise engage in any transaction with another businesses (competitive or not), which may offer products and services like your Franchised Business and may have one or more competing outlets within your Territory, however, we will not convert any acquired business in your Territory to a franchise using our primary trademarks during the Term of your Franchise Agreement;
• to operate or franchise a business under a different trademark which such business sells or will sell goods or services like those you will offer, anywhere;
• to negotiate purchase agreements with vendors and suppliers which we reasonably believe are for the benefit of our franchisees;
• and, to engage in any other business activities not expressly prohibited by the Franchise Agreement, anywhere. Neither we nor an affiliate operates, franchises, or has plans to operate or franchise a business under a different trademark. Such a business would sell or will sell goods or services similar to those you will offer. However, we reserve the right to do so in the future.

Franchise Characteristics:

• Experience in construction (3+ years)
• Commitment to ethical business practices
• A strong motivation to succeed
• Effective selling skills
• A good reputation in your community
• Confident sharing your ideas
• Self-starter with a can-do attitude
• Demonstrated leadership skills
• Effective problem-solver
• Patience and empathy with customers
• Open minded to new operations methodologies

Business model

The FTC’s Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the Disclosure Document.

Financial performance information that differs from that included in Item 19 may be given only if:

• a franchisor provides the actual records of an existing outlet you are considering buying;
• or a franchisor supplements the information provided in this Item 19; for example, by providing information about possible performance at a particular location or under particular circumstances.

We do not make any representations about a franchisee’s future financial performance or the past financial performance of company-owned or franchised outlets. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to the franchisor’s management at 1446 Baltimore Street, Suite E, Hanover, PA 17331, or by contacting the Federal Trade Commission, and the appropriate state regulatory agencies.

How much does the CR3 American Exteriors franchise cost?

Initial investments: $73,000 - $188,300
Royalties: 6.0% of monthly Gross Revenue
Technology Fee: $500 per month
Advertising Fund: 1% of previous month’s Gross Revenue.
Franchise fees: $40,000

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Franchise requirements

In order to operate a Franchised Business, you must comply with all federal, state, and local laws and regulations which apply generally to all businesses and specifically to businesses involving building and construction. These laws and regulations may require you to register, obtain a license, or obtain professional certification from local or state regulators prior to offering the Approved Products and Services. These laws also include national and local building codes. You will be responsible for obtaining any necessary municipality permits and complying with all municipality building and inspection protocols. Your Franchised Business will also be subject to federal, state, and local safety and environmental laws, rules, and regulations.

When operating a franchise business, you must strictly comply with all Occupational Safety and Health Administration (OSHA) requirements. Any other state or local rules or regulations relating to jobsite safety must be followed at all times. You must strictly comply with all Environmental Protection Agency (EPA) rules, regulations and guidelines pertaining to the use and disposal of materials.

Obligation to Participate in the Operation of the Franchise Business

Unless we approve the employment of an on-site general manager, you (if an individual) or a principal owner, officer, or employee (if a legal entity) must actively participate in the operation of the franchise and devote sufficient time to its efficient management.

If a general manager is approved, they will oversee day-to-day operations, have authority to make decisions on your behalf, and must comply with confidentiality and non-competition terms. The general manager must attend and complete the initial training program, and you must obtain our written approval of their qualifications.

Hiring a general manager does not relieve you of your obligations under the Franchise Agreement. Failure to meet these obligations may result in us temporarily managing your client accounts. The general manager cannot have any business relationship with a competitor, must sign a confidentiality agreement, and comply with non-compete terms.

If the franchise is owned by an entity, all owners must sign the Franchise Agreement. Transferring your franchise interest to a business entity you own does not relieve you of personal responsibility. Owners and managers must perform their obligations diligently and avoid any conflicting business activities. All owners and managers must pass a background check, and any changes in ownership require our prior written consent.

Restrictions on what the franchisee may sell

If you operate a CR3 American Exteriors, you must offer, sell, and perform only those services and products we require or have approved from time to time. You must not offer or sell any products or perform any services that we have not authorized. You may offer your services to any customers consistent with your territorial rights. Furthermore, you must offer all services that we designate as required for all franchisees.

Our System Standards may regulate required or authorized Products and Services. We have the right to change or add new or additional Products and Services that you must offer at your CR3 American Exteriors Franchise. There are no restrictions or limitations on our right to do so. You will not, during the duration of the Franchise Agreement and for a period of two (2) years after expiration or termination of the Franchise Agreement, in the Territory or within twenty-five (25) miles of the boundaries of the Territory (“Restricted Market”), provide or offer to provide prospective clients services of a similar kind or nature (“Restricted Activities”).

For the avoidance of doubt, Restricted Activities include directly or indirectly owning, managing, or providing services to a third party that sells offers or provides a similar service as your Franchised Business. This restriction applies even if you sell your Franchise Business. You must operate the Franchised Business in strict conformity with all applicable federal, state, and local laws, ordinances, and regulations. These laws, ordinances and regulations vary from jurisdiction to jurisdiction and are amendable and may be implemented or interpreted in different manners over time. It is solely your responsibility to apprise yourself of the existence and requirements of all laws, ordinances, and regulations applicable to the Franchised Business and to adhere to them and to the then-current implementation or interpretation of them.

Franchise advantages

The target market for our Products and Services is highly developed and very competitive. You will compete with established businesses offering similar products and services in your Territory. The competition will include local independent outlets, regional chains, national chains, and other franchised businesses. Your primary customers will be commercial or residential property owners, property managers, and other individuals responsible for the construction, maintenance or repair of commercial or residential property.

We will charge you an initial fee of $40,000 (the “Initial Franchise Fee”) to obtain the right to establish and operate a single franchise location. This payment is due in in full before you attend Initial Training, usually when you sign the Franchise Agreement. We will refund the Initial Franchise Fee paid by you if we do not approve your application or if you do not pass our Initial Training in accordance with our current passing standards, provided that you return all training materials to us. The Initial Franchise Fee is fully earned by us and is non-refundable once we have completed our obligation to provide Initial Training and you have successfully completed Initial Training. In the event that you are an existing franchisee of one of our current Loyalty Brands Affiliates, your Initial Franchise Fee will be discounted by 25%. From time to time, we may also offer special incentive programs as part of our franchise development efforts. We reserve the right to offer, modify, or withdraw any incentive program without notice to you.

Proven systems and processes

• Proven systems and processes that are already built.
• Operational support/guidance on how to run and grow your business.
• Technical support.
• Marketing messages and marketing support.
• Exclusive manufacturer/business statuses.
• Regular training to help grow your business.
• Industry trends/new technologies are followed by corporate.
• Industry best practices.
• Legal agreements for sub-contractors, employees, and customers.
• Everything is pilot tested first.
• Time and money savings by following a proven model.

Market and financial advantages

• Bulk purchasing.
• Consumers gravitate towards brands they know.
• Franchise locations get higher multiples than independents.
• Cost per acquisition is less.
• Name brands attract higher quality talent/employees.
• Franchises stay in business, 90% of independents fail long term.

Network and community

• Network of franchisees/other business owners to network with.
• Existing network of buyers if someone wants to exit.
• Mentorship to become a great CEO.
• Group learning. Learn from other people’s wins/failures.
• Emergency backup if illness or death occurs.
• National referrals.
• Each location benefits from the publicity of the other locations.
• National Convention – Chance to collaborate with 100’s of other business owners.
• Reminders about important events/tasks to elevate your business.