Are Cr3 American Exteriors company outlets required to contribute to the 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, company-owned outlets are not required to contribute to the Advertising Fund. However, franchisees are required to contribute one percent (1%) of their Gross Revenues per month into the Advertising Fund. This fund is administered by Cr3 American Exteriors.
The Advertising Fund is used for brand development, and while it will not be audited, unaudited financial statements are available to franchisees upon written request. Cr3 American Exteriors states that it will not use the Advertising Fund to solicit new franchisees.
For the fiscal year ending December 31, 2024, the Advertising Fund spent all but $1,971.56 (3%) of its funds, which was carried over for use in 2025. This means that franchisees can expect that the vast majority of their contributions to the advertising fund will be spent in the year they are collected, with only a small amount potentially being carried over.