When does Cr3 American Exteriors collect the initial franchise fee from franchisees in Minnesota?

According to Cr3 American Exteriors' 2025 Franchise Disclosure Document, the collection of the initial franchise fee is deferred for franchisees in Minnesota. Specifically, the Minnesota Department of Commerce requires Cr3 American Exteriors to postpone payment of the initial franchise fee until the franchisee has opened their franchised business. This modification is noted in Item 5 and Item 7 of the FDD.

This deferred payment structure means that prospective Cr3 American Exteriors franchisees in Minnesota will not be required to pay the initial franchise fee of $40,000 upon signing the franchise agreement. Instead, they can delay this payment until after they have completed the necessary training and have successfully opened their business.

This arrangement can be advantageous for franchisees as it reduces the upfront financial burden and allows them to allocate resources towards setting up and launching their business. It also provides a degree of assurance, as the fee is only paid once the franchisee is operational. This deferred payment of the initial franchise fee is a specific modification to the standard agreement for Minnesota franchisees, reflecting compliance with Minnesota state regulations.