Does the Cr3 American Exteriors FDD include a schedule detailing minimum requirements?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
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CR3 American Exteriors Franchisee Entity Address Signator Signator Address Year Royalty Fee 1 2,000.00 monthly (beginning in month #7) 2 2,000.00 monthly 3 2,000.00 monthly 4 2,000.00 monthly 5 2,000.00 monthly 6 2,000.00 monthly 7 2,000.00 monthly 8 2,000.00 monthly 9 2,000.00 monthly 10 2,000.00 monthly## SCHEDULE 1-TERRITORY
Your territory shall be as follows:
SCHEDULE 2-MINIMUM REQUIREMENTS
Growth is key. You must use commercially reas
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to the 2025 Cr3 American Exteriors FDD, Schedule 2 outlines the minimum requirements for franchisees. It emphasizes the importance of growth and requires franchisees to use commercially reasonable efforts in delivering recommended services and participating in marketing programs.
The schedule specifies that franchisees must meet certain performance metrics, with a minimum monthly royalty of $2,000 beginning in the seventh month after the Franchise Agreement is executed. This minimum royalty payment continues each year for the term of the agreement.
This requirement means that a Cr3 American Exteriors franchisee needs to achieve a certain level of revenue to cover this minimum royalty, regardless of their actual gross revenues. This could pose a financial challenge for new franchisees or those in slower-growth territories, as they must meet this financial obligation to remain in compliance with the franchise agreement.