Who administers the Advertising Fund for Cr3 American Exteriors?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
omotional programs and that we create, offer or advertise.*
- (iii) Your advertising must comply with federal, state, and local laws.
- (iv) We recommend you spend the greater of (a) 2-3% of Gross Revenue or (b) a minimum of $20,000 per year, on local advertising and promotional efforts, pursuant to our guidelines.
B. Participation in Advertising Fund
You will contribute one percent (1%) of your Gross Revenues per month into a systemwide advertising fund (the "Advertising Fund"). Franchisor owned outlets do not have to contribute to the Advertising Fund. We administer the Advertising Fund. The Advertising Fund is not audited. Unaudited financial statements of the Advertising Fund will be made available to you upon written request. If not all Advertising Fees are spent in the fiscal year in which they accrue, we will carry over those fees and apply them to the next fiscal year. We will not use Advertising Fees to solicit new franchise sales.
3.3. Our Obligation to Conduct Advertising
We use monies in the Advertising Fund to advise you in the conduct of advertising or conduct advertising ourselves using online, radio, television, direct mail, billboards, print or other advertising. We may use local, regional, or national advertising. We may produce advertising material in-house or though outside agencies. We are not required to spend any amount on advertising in the area or Territory where you will be located. We are not required to contribute to the fund.
3.4. Corporate Website.
We will develop and maintain a comprehensive website that contains your location's contact information.
3.5. Digital Marketing.
We have the sole right to control all aspects of any digital marketing including all digital marketing related to your Franchised Business.
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to Cr3 American Exteriors' 2025 Franchise Disclosure Document, the franchisor, Tectum Franchising LLC, administers the Advertising Fund. Franchisees are required to contribute one percent (1%) of their Gross Revenues per month into this fund, which is used for system-wide advertising efforts. However, Cr3 American Exteriors owned outlets do not have to contribute to the Advertising Fund.
The Advertising Fund is not audited, but unaudited financial statements are available to franchisees upon written request. Any unspent advertising fees at the end of the fiscal year are carried over and applied to the next fiscal year. It is explicitly stated that Advertising Fees will not be used to solicit new franchise sales.
Cr3 American Exteriors uses the Advertising Fund to advise franchisees in their advertising efforts or conducts advertising themselves through various channels such as online, radio, television, direct mail, billboards, and print. These advertising efforts may be local, regional, or national. Cr3 American Exteriors has the right to produce advertising material in-house or through outside agencies. It is important to note that Cr3 American Exteriors is not required to spend any specific amount on advertising in the franchisee's specific area or territory, nor are they required to contribute to the fund themselves.
Furthermore, Cr3 American Exteriors will develop and maintain a comprehensive website that includes the franchisee's location contact information. They also retain sole control over all aspects of digital marketing related to the franchised business, including websites, social media, digital advertising, and other digital marketing means to promote the brand and franchise opportunities.