How are most fees paid to Cr3 American Exteriors?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
them to us, and we do not refund them.
Note 2: Before you may open for business, you must sign and deliver to us all bank documents needed to permit us to debit your bank account via ACH Electronic Transfer for all fees and payments due to us. If you change your bank account or transfer your account to a different bank, you must notify us within one day, and sign and deliver to us and the bank new documents to permit us to debit your bank account within three days. We require you to execute an Automatic Bank Draft Authorization and pay most fees to us via ACH electronic funds transfer. See Schedule 3 to the Franchise Agreement. All royalties on transactions will be paid at the time of deal closing through escrow attorney.
Note 3: "Gross Revenue" shall mean all revenues that you derive or receive, directly or indirectly, from the operation of the Franchised Business excluding only sales and use taxes.
Note 4: The Technology Fee currently includes a license to use a third-party technology platform designed to help businesses streamline their operations, enhance customer experiences, and boost their digital presence.
Source: Item 6 — OTHER FEES (FDD pages 18–20)
What This Means (2025 FDD)
According to Cr3 American Exteriors' 2025 Franchise Disclosure Document, most fees are paid via ACH electronic funds transfer. Before opening for business, franchisees must sign and deliver all necessary bank documents to allow Cr3 American Exteriors to debit their bank account. Franchisees must notify Cr3 American Exteriors within one day if they change their bank account or transfer it to a different bank, and provide new bank documents within three days to continue the ACH electronic funds transfer arrangement.
Specifically, Cr3 American Exteriors requires franchisees to execute an Automatic Bank Draft Authorization for most fees. However, royalties on transactions are paid at the time of deal closing through an escrow attorney. There is also a credit card processing fee that the franchisee agrees to pay if they pay any sums to Cr3 American Exteriors by credit card, to the extent permitted by law.
Additionally, if an electronic transfer or other payment from the franchisee to Cr3 American Exteriors is declined, the franchisee will be charged a $50 insufficient funds fee per transaction. Interest will be charged at the highest applicable legal rate, not to exceed 12% per annum, on amounts that are past due for more than 5 days. This applies to all Royalty Fees, Technology Fees, Advertising Fund contributions, and any other amounts owed to Cr3 American Exteriors.