CR3 American Exteriors Franchise Cost, Revenue & Review 2026
- Investment
- $89K – $243K
- Disclosed sales
- not disclosed
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
CR3 American Exteriors is a home services franchise providing residential roofing, siding, windows, and gutters. Franchisees run local operations, managing sales, estimates, crews, and project delivery.
FranchiseVerdict summary · 2026
A CR3 American Exteriors franchise requires a total initial investment of $89K – $243K, including a $40K franchise fee and an ongoing 6.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2025 filing · Data extracted: · Last cited check: · Staleness risk: medium - a newer filing may exist
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $89K – $243K
- 27th pct Home Services
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 21st pct Home Services
- Units
- 16
- 25th pct Home Services
- SBA charge-off
- N/A
Quick verdict · Home Services · color = vs category peers
Green = favorable by >10% vs Home Services median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $89K – $243K including a $40K franchise fee, 6.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 50/100 (higher is better).
- GROWTHPositive: net +4 franchised outlets in the latest year (0 opened, 0 closed); 2 signed but not yet open (Item 20).
- LEGAL10 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Tectum Franchising LLC d/b/a CR3 American Exteriors
- Parent company
- Loyalty, LLC (Loyalty Brands) and Fryfogle Luterman, LLC (50/50 joint control)
- FDD Item 1, page 9 of the 2025 FDD
- CEO title
- Chief Operating Officer (listed as COO; also described as CEO of CR3 American Exteriors)
- Carnie Fryfogle III
- Incorporated in
- VA
- HQ
- 780 Lynnhaven Parkway, Suite 240, Virginia Beach, VA 23452
- Auditor
- DASH Business Solutions, LLC
- Audited financials
- Franchisor revenue
- $534K
- vs $183K prior year
Overview
About
- CEO
- Carnie Fryfogle III
- Headquarters
- VA
- Founded
- 2022
- FDD year
- 2025
- States available
- 14
Can you afford it, and what does the money buy?
Entry cost is about typical for a home services franchise (near the category median).
Source: FDD 2025 · Items 5–7
published investment is a single CR3 American Exteriors roofing and remodeling services business. The franchisor also offers an area-representative grant under a separate FDD (CR3_American_Exteriors_NASAA_555956.pdf, 2025): fee $100,000-$500,000, estimated initial investment $109,750-$517,000; that offering is not priced on this page.
Full Item 7 breakdown16 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee (Note 1) | $40K | $40K | |
| Initial Technology Package Fee | $1K | $1K | |
| Real Estate/Security Deposit (Note 2) | $5K | $9K | |
| Leasehold Improvements (Note 3) | $3K | $10K | |
| Computer Systems (Note 4) | $400 | $3K | |
| Vehicles (Note 5) | $0 | $60K | |
| Initial Equipment (Note 6) | $2K | $15K | |
| Branding, Equipment and Supplies (Note 7) | $500 | $1K | |
| Certificates, Licenses, and Permits (Note 8) | $0 | $3K | |
| Insurance (Note 9) | $10K | $22K | |
| Professional Fees-Legal & Accounting (Note 10) | $500 | $4K | |
| Utility Deposits (Note 11) | $0 | $1K | |
| Local Brand Optimization (Note 12) | $1K | $3K | |
| Initial Training (Note 13) | $500 | $4K | |
| Telecommunications Services (Note 14) | $0 | $400 | |
| Additional Funds - 3 months (Note 15) | $26K | $68K | |
| Total initial investment | $89K | $243K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $89K – $243K
- Top 40% of category vs category
- Liquid capital req'd
- $26K – $68K
- Middle of category vs category
- Franchise fee
- $40K – $40K
- Top 40% of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 1.0% |
| Transfer fee | $10K |
| Renewal fee | $0 |
| Total fee load | 7.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
CR3 American Exteriors makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one CR3 American Exteriors unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 7.0% (near the Home Services median).
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
Net unit growth of +50.0% over 3 years (0 opened, 0 closed).
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Home Services medians
How CR3 American Exteriors Compares
Category median of published Home Services brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 16
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 25.0%
- Company-owned
- 4
- Corporate units in the system
- % franchised
- 75%
- vs corporate-owned
- Net growth (3-yr)
- +50.0%
- Net unit change over 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 2
- 0.13 per open outlet · Item 20 Table 5
- Projected new
- 14
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 12 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Where the owners are · Item 20 owner list
19 current owners across 12 states.
- NC 5
- AZ 2
- TN 2
- VA 2
- FL 1
- GA 1
- MD 1
- MI 1
- NY 1
- PA 1
- SC 1
- TX 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Early-stage, unproven exterior services franchise led by litigation-prone founder, lacking financial transparency and operating with structural royalty burden that threatens unit economics.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
Every disclosed matter names John T. Hewitt, CEO and Chairman of Loyalty, LLC (a 50% owner of the franchisor), mostly from his former role at Liberty Tax: a 2025 pending investor fraud and fiduciary-duty suit by two ATAX investors, a Liberty Tax trade-secret and interference suit settled in 2021 for $545,000, four 2017-2018 shareholder derivative and contract suits that settled, a California DFPI consent order requiring Hewitt to disclose a DOJ order, and the 2019 DOJ action against Liberty Tax. Neither Tectum Franchising LLC nor any CR3 American Exteriors entity is a party to any of them.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · DASH Business Solutions, LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Audited financial statements of Tectum Franchising LLC (the franchisor itself; it has no parent) for the three years ended December 31, 2024, with independent auditor's report by DASH Business Solutions, LLC (Royal Palm Beach, FL), plus an unaudited balance sheet and P&L as of March 31, 2025; Exhibit C pages are image-only.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 50 / 100 verdict
- 01HIGHFounder John T. Hewitt has substantial litigation history including fraud allegations from Liberty Tax tenure, creating reputational and operational risk
- 02MINORRapid 50% YoY unit growth with only 16 total units suggests early-stage franchise with unproven business model and high failure risk
- 03MINORMinimum $2,000/month royalty floor ($24k annually) represents 31% of lowest investment on a breakeven basis
- 04MINORNo going concern statement indicates potential financial instability at corporate level affecting franchisee support
- 05MINORExterior services market is highly competitive with low barriers to entry and price-sensitive customers
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 500,000 |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 15 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Virginia |
| Jury trial waiver | Yes |
| Governing law | VA |
| Litigation count | 10 |
View Item 3 litigation summary
Every disclosed matter names John T. Hewitt, CEO and Chairman of Loyalty, LLC (a 50% owner of the franchisor), mostly from his former role at Liberty Tax: a 2025 pending investor fraud and fiduciary-duty suit by two ATAX investors, a Liberty Tax trade-secret and interference suit settled in 2021 for $545,000, four 2017-2018 shareholder derivative and contract suits that settled, a California DFPI consent order requiring Hewitt to disclose a DOJ order, and the 2019 DOJ action against Liberty Tax. Neither Tectum Franchising LLC nor any CR3 American Exteriors entity is a party to any of them.
Items 10, 11
Training & Operations
- Classroom training
- 22 hrs
- On-the-job training
- 8 hrs
- Training location
- Hanover, PA or online (at franchisor's choosing); Getting Started and post-in-person modules online or at your location
- Ongoing training
- Required
- Time to open
- 3 mo
- From signing to launch
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
19 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a CR3 American Exteriors franchise?
The total investment to open a CR3 American Exteriors franchise ranges from $89K – $243K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do CR3 American Exteriors franchise owners earn?
CR3 American Exteriors makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns CR3 American Exteriors?
CR3 American Exteriors is franchised by Tectum Franchising LLC d/b/a CR3 American Exteriors. Its parent company is Loyalty, LLC (Loyalty Brands) and Fryfogle Luterman, LLC (50/50 joint control). Source: FDD Item 1, 2025 filing.
What is Item 19 in the CR3 American Exteriors FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the CR3 American Exteriors FDD and qualifies whose outlets they describe.
What is CR3 American Exteriors's franchise failure rate?
SBA 7(a) loan charge-off data is not available for CR3 American Exteriors (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many CR3 American Exteriors franchise locations are there?
As of their most recent FDD filing, CR3 American Exteriors has 16 total units in the United States, including 12 franchised units and 4 company-owned units.
Is CR3 American Exteriors a good franchise to buy?
FranchiseVerdict rates CR3 American Exteriors as a B-grade franchise with a verdict score of 50 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.