Will the Cr3 American Exteriors Advertising Fund be audited?
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 Advertising Fund will not be audited. However, unaudited financial statements of the Advertising Fund will be available to franchisees upon written request.
Franchisees are required to contribute 1% of their gross revenues per month to the Advertising Fund, while company outlets are not required to contribute. Cr3 American Exteriors administers the Advertising Fund and will not use these funds to solicit new franchisees.
For the fiscal year ending December 31, 2024, the Advertising Fund had a remaining balance of $1,971.56, which is 3% of the total funds. This balance was carried over for use in 2025. The FDD also provides a breakdown of how the 2024 Advertising Funds were spent, with categories such as Production (21.3%), Media Placement (7.05%), General/Subscriptions (69.2%), and Administrative Expenses (2.53%).