What is the basis for royalty revenue and other fees for Cr3 American Exteriors?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
trade, and any other lawful purposes.
4. Fees
4.1. Initial Franchise Fee
Upon execution of this Agreement, you will pay us an Initial Franchises Fee of $40,000.
The Initial Franchise Fee is non-refundable once we have completed our obligation to provide Initial Training and you have successfully completed Initial Training.
4.2. Royalty Fee
You will pay to us a monthly fee equal to the greater of 6.0% of the monthly Gross Revenues (the "Royalty Fee") or $2,000.00 per month (the "Minimum Monthly Royalty"). The Royalty Fee will begin your first month in operation;
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to the 2025 FDD, Cr3 American Exteriors franchisees are required to pay a monthly royalty fee. This fee is calculated as the greater of 6.0% of the monthly Gross Revenues or a minimum of $2,000.00 per month. This ensures that Cr3 American Exteriors receives a consistent revenue stream from each franchise location.
The royalty fee begins in the franchisee's first month of operation. However, the Minimum Monthly Royalty of $2,000.00 does not commence until the seventh month after the franchisee begins operations. This provides a grace period for new franchisees to establish their business and generate sufficient revenue before being subject to the minimum royalty payment.
In addition to the royalty fee, the initial franchise fee is $40,000. This fee is non-refundable once Cr3 American Exteriors has completed its obligation to provide Initial Training and the franchisee has successfully completed Initial Training. This upfront fee compensates Cr3 American Exteriors for the initial support and training provided to new franchisees, enabling them to operate their business according to the established franchise system.