What is the deadline for paying the Royalty Fee for Cr3 American Exteriors, as specified in Item 6?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE (Note 2) | REMARKS |
|---|---|---|---|
| (Note 1) | |||
| Royalty Fee | The greater of (i) 6.0% of monthly Gross Revenue collected (the “Royalty Fee”) or (ii) $2,000.00 (the “Minimum Royalty Fee”). (Note 3) | By the 10th day of the month. | Royalty Fee’s start the first month in operation; however, the Minimum Monthly Royalty Fee, if applicable, will not begin until the 7th month of operation. Payments are due on |
What This Means (2025 FDD)
According to Cr3 American Exteriors' 2025 Franchise Disclosure Document, the Royalty Fee is due by the 10th day of the month. The Royalty Fee is the greater of 6.0% of monthly Gross Revenue or $2,000.00 (the “Minimum Royalty Fee”).
This means that as a Cr3 American Exteriors franchisee, you must calculate your Gross Revenue for the previous month and remit the appropriate Royalty Fee by the 10th of the current month. Gross Revenue includes all revenues derived directly or indirectly from the operation of the franchised business, excluding sales and use taxes.
It's important to note that while Royalty Fees start the first month of operation, the Minimum Monthly Royalty Fee of $2,000 only begins in the 7th month of operation. Additionally, Item 6 specifies that Cr3 American Exteriors requires franchisees to sign and deliver bank documents to permit them to debit the franchisee's bank account via ACH Electronic Transfer for all fees and payments due.