CR3 American Exteriors Franchise Cost, Revenue & Review 2026
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 $110K – $517K, including a $100K – $500K franchise fee. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $110K – $517K
- 39th pct Home Services
- Avg gross sales
- N/A
- 0 outlets
- Royalty
- N/A
- Units
- 0
- 0th pct Home Services
- SBA charge-off
- N/A
Quick verdict · Home Services · color = vs category peers
Green = favorable by >10% vs Home Services avg · 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 $110K – $517K including a $100K franchise fee.
- RETURNSFigures from the audited financial statements of Tectum Franchising LLC (the franchisor), the entity Item 21 relies on, for fiscal year ended December 31, 2024 (prior year 2023). Statements are presented in whole US dollars (not scaled). Total Revenues 2024 = $533,813, comprising Franchise Fees $18,689, Royalty Fees $418,672, Marketing $80,488, and Other Revenue $15,964. Balance sheet reconciles: Total Liabilities $386,385 + Members' Equity $138,538 = Total Assets $524,923.
- RISKVerdict D (Below average), verdict score 35/100 (higher is better).
- LEGAL11 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)
- 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 runs 39% above the typical home services franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $100K | $100K |
| Working capital (3–6 mo) | $3K | $5K |
| Equipment, build-out, other | $7K | $412K |
| Total initial investment | $110K | $517K |
Source: CR3 American Exteriors 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $110K – $517K
- Top 40% of category vs category
- Liquid capital req'd
- $3K – $5K
- Top 40% of category vs category
- Franchise fee
- $100K – $500K
- Bottom third — review vs category
- Royalty
- No royalty paid by Area Representative to franchisor; AR …
- Ad fund
- No advertising fund exists for Area Representatives; a se…
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Technology fee | $200 |
| Transfer fee | $10K |
| Renewal fee | $0 |
| Total fee load | 7.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
CR3 American Exteriors did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one CR3 American Exteriors unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
24%
Below the 30–60% attractive-franchise band
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
Figures from the audited financial statements of Tectum Franchising LLC (the franchisor), the entity Item 21 relies on, for fiscal year ended December 31, 2024 (prior year 2023). Statements are presented in whole US dollars (not scaled). Total Revenues 2024 = $533,813, comprising Franchise Fees $18,689, Royalty Fees $418,672, Marketing $80,488, and Other Revenue $15,964. Balance sheet reconciles: Total Liabilities $386,385 + Members' Equity $138,538 = Total Assets $524,923.
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% — below the Home Services average of 8.9%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
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 averages
How CR3 American Exteriors Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 0
- 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
- 0
- Corporate units in the system
- % franchised
- 75%
- vs corporate-owned
- Net growth (3-yr)
- +50.0%
- Net unit change over 3 years
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
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.
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)
All litigation involves John T. Hewitt (Advisor, Chairman of Loyalty Brands), primarily related to his prior role at Liberty Tax/JTH Tax. Cases include trade secret/interference claims by Liberty Tax (settled $545K), shareholder derivative actions (settled 2019), DOJ consent order against Liberty Tax, CA consent order requiring Hewitt to disclose prior order, and a 2025 pending investor fraud suit in ATAX. No suits name CR3 American Exteriors or Tectum Franchising as parties.
Largest disclosed settlement: $775,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · DASH Business Solutions, LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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 35 / 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 |
|---|---|
| Renewal term | 10 years |
| Territory type | none |
| Protected territory | No |
| 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 | 11 |
View Item 3 litigation summary
All litigation involves John T. Hewitt (Advisor, Chairman of Loyalty Brands), primarily related to his prior role at Liberty Tax/JTH Tax. Cases include trade secret/interference claims by Liberty Tax (settled $545K), shareholder derivative actions (settled 2019), DOJ consent order against Liberty Tax, CA consent order requiring Hewitt to disclose prior order, and a 2025 pending investor fraud suit in ATAX. No suits name CR3 American Exteriors or Tectum Franchising as parties.
Items 10, 11
Training & Operations
- Classroom training
- 30 hrs
- On-the-job training
- 8 hrs
- Training location
- Hanover, PA (or online or franchisee's 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
FDD download
CR3 American Exteriors · FDD (2025) PDF
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 $110K – $517K, with an initial franchise fee of $100K. 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 does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
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.
Is CR3 American Exteriors a good franchise to buy?
FranchiseVerdict rates CR3 American Exteriors as a D-grade franchise with a verdict score of 35 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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
Are you the franchisor?
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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.