CR3 American Exteriors Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$109,750 - $517,000
Franchise Fee
$90,000
Business Summary
CR3 American Exteriors Area Representatives recruit and support unit franchisees who offer, sell, and perform roofing and remodeling services for commercial and residential customers. As an Area Representative, CR3 American Exteriors Area Representative does not directly perform these services but rather finds, solicits, and recruits prospective unit franchisees within a designated area representative territory. They also provide ongoing marketing and operational support to these unit franchised businesses. In exchange, CR3 American Exteriors Area Representative receives a portion of certain initial franchise fees and ongoing royalty fees collected from the unit franchisees they recruit.
Corporate History
CR3 American Exteriors was formed as a Virginia Limited Liability Company on July 12, 2022. It is jointly owned and controlled by Loyalty, LLC and Fryfogle Luterman, LLC. While CR3 American Exteriors itself began offering unit franchises in September 2022 and area representative franchises in December 2024, an affiliate, C3 Roofing & Remodeling Inc., has operated under the CR3 American Exteriors mark and offered similar services since 2018. CR3 American Exteriors does not have any parent companies or predecessors.
Financial Overview
Investment Range
$109,750 - $517,000
Franchise Fee (Low)
$90,000
Franchise Fee (High)
$500,000
Equipment Costs (Low)
$900
Equipment Costs (High)
$1,500
Working Capital
$4,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
While CR3 American Exteriors reported a net income of $89,667 in 2024, following losses of $14,538 in 2023 and $46,591 in 2022, and shows strong current assets relative to current liabilities, the company's financial condition is explicitly noted in the FDD's 'Special Risks' section as calling into question CR3 American Exteriors' financial ability to provide services and support to its franchisees.
Financing Details
CR3 American Exteriors does not offer any direct or indirect financing to its area representatives. This includes not guaranteeing any notes, leases, or other obligations on their behalf. Area representatives are responsible for securing their own financing.
Performance Metrics
Total US Locations
0
Franchised Units
0
Corporate Units
0
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
8
Litigation Summary
CR3 American Exteriors reports several past legal actions primarily involving John T. Hewitt, an advisor to CR3 American Exteriors and CEO of Loyalty Brands, and his previous affiliation with Liberty Tax. These actions include multiple lawsuits filed between 2017 and 2021 by JTH Tax LLC (Liberty Tax), former employees, and shareholders. The allegations ranged from trademark confusion and tortious interference with contractual relations to breach of employment agreements and fiduciary duties, as well as claims of fraud and unfair competition. Most of these cases were settled or dismissed, often with financial payments made by Liberty Tax or agreements from Mr. Hewitt and affiliates to refrain from certain competitive actions. Additionally, a 2019 governmental action by the Department of Justice against Liberty Tax, which referenced John T. Hewitt's supervision, resulted in Liberty Tax agreeing to a compliance program and not rehiring Mr. Hewitt. A separate Consent Order from the California Commissioner of Financial Protection and Innovation in 2019 required John T. Hewitt to disclose this governmental action in future FDDs. All reported litigations were concluded before April 30, 2022, and CR3 American Exteriors does not have any pending actions.
Bankruptcy History
CR3 American Exteriors has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their agreement for an additional ten-year term, CR3 American Exteriors Area Representatives must be in compliance with all material terms and conditions of their agreement. They are required to notify CR3 American Exteriors in writing at least 120 days before the current agreement expires, execute a general release of all claims, and pay a renewal fee calculated at $1,000 per unit franchise territory developed or still available for potential development within their area representative territory. The new agreement may contain materially different terms, but it will not reduce the size of the area representative territory (subject to minimum requirements) or decrease the commission amounts.
Training & Support Program
Franchisor Assistance
CR3 American Exteriors provides various forms of assistance to its Area Representatives. Before opening, they grant area representative rights, define the territory, provide access to the Unit Franchise Disclosure Document, loan confidential manuals, and supply lists of approved suppliers, distributors, signage, equipment, furniture, and fixtures. They also identify the Area Representative on their website and provide initial training for the Area Representative or their Managing Owner. After opening, CR3 American Exteriors offers consultations and communications on operating standards, marketing materials, and candidate status. They continue to provide access to the Unit Franchise Disclosure Document and sales materials, pay commissions (based on initial franchise fees and royalties from unit franchisees), offer refresher training programs or seminars, and provide marketing standards and approved vendors. CR3 American Exteriors does not assist with the hiring or training of Area Representative employees.
Initial Training Hours
38
Training Location
Hanover, PA or online
Ongoing Support
CR3 American Exteriors provides ongoing support to its Area Representatives through consultations and communications regarding operating standards, System requirements, and marketing materials. They ensure Area Representatives have access to the current Unit Franchise Disclosure Document and approved sales materials. CR3 American Exteriors may also offer refresher training programs and seminars, including national and regional meetings, and sets marketing standards for the promotion of unit franchises. Additionally, they provide lists of approved vendors and suppliers for the System.
Franchise Requirements
Ideal Candidate Profile
CR3 American Exteriors is seeking Area Representatives who are personally responsible for the management and overall operations of their business, requiring them to successfully complete initial training and be approved by CR3 American Exteriors. Ideal candidates must be familiar with all applicable laws, rules, and regulations related to the offer and sale of franchises, including proper disclosure and registration as a franchise seller. They also need to be knowledgeable about local codes, laws, rules, and regulations governing residential and commercial construction to effectively support unit franchisees, and capable of obtaining and maintaining relevant construction-related licenses or certifications within their designated territory. All owners are required to personally guarantee the obligations under the Area Representative Agreement.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
Yes
Operational Details
Location Type
Home-Based
Owner Participation
hands-on
Territory Type
Non-Exclusive
Territory Size Requirements
CR3 American Exteriors Area Representative territories are defined by zip codes, political, or geographic boundaries. A typical Area Representative territory is designed to be large enough to potentially develop 10 to 50 Unit Franchises. Each individual Unit Franchise territory within this larger area is specified to contain a minimum population of approximately 500,000 residents, with population data sourced from the U.S. Census Bureau or another reliable service.