Who administers the Cr3 American Exteriors Advertising Fund?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
of $20,000 or 3-5% of Gross Revenue per year on local advertising pursuant to our guidelines. (Franchise Agreement, Section 3.2(B)).
Advertising Fund. We maintain a brand development fund (the "Advertising Fund"). You are required to contribute one percent (1%) of your Gross Revenues per month into our Advertising Fund. Company outlets are not required to contribute to the Advertising Fund. We administer the Advertising Fund. The Advertising Fund will not be audited. Unaudited financial statements of the Advertising Fund will be made available to you upon written request. We will not use Advertising Funds to solicit new franchisees.
In our last fiscal year ending December 31, 2024, the Advertising Fund spent al
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 32–37)
What This Means (2025 FDD)
According to Cr3 American Exteriors's 2025 Franchise Disclosure Document, the franchisor administers the Advertising Fund. Franchisees are required to contribute 1% of their gross revenues per month to this fund, while company-owned outlets are not required to contribute.
The document specifies that the Advertising Fund will not be audited. However, Cr3 American Exteriors will provide unaudited financial statements of the fund to franchisees upon written request.
For the fiscal year ending December 31, 2024, the Advertising Fund spent all but $1,971.56, which represents 3% of the funds and was carried over for use in 2025. This provides some insight into how the fund is managed and the level of transparency offered to franchisees, although it's important to note the lack of a formal audit.