For Cr3 American Exteriors franchisees in Hawaii, when are the initial fees collected?

According to the 2025 Cr3 American Exteriors Franchise Disclosure Document, the collection of initial fees from franchisees in Hawaii is deferred. Cr3 American Exteriors will not collect these fees until it has completed all of its pre-opening obligations to the franchisee. Furthermore, the franchisee must be open for business before the initial fees are collected. This modification to Item 5 of the FDD and Item 4.1 of the Franchise Agreement provides a financial benefit to new Hawaii franchisees, as they do not have to pay the initial franchise fee until the business is ready to open.

This deferred payment structure reduces the upfront financial burden on new franchisees. Typically, initial franchise fees are due upon signing the franchise agreement or shortly thereafter. By delaying the collection of these fees, Cr3 American Exteriors allows Hawaii franchisees to allocate their initial capital towards other essential startup costs, such as securing a location, purchasing equipment, and initial marketing expenses. This can significantly improve the franchisee's cash flow during the critical early stages of the business.

It is important for prospective franchisees in Hawaii to understand exactly what constitutes the completion of Cr3 American Exteriors's pre-opening obligations. Franchisees should seek clarification from Cr3 American Exteriors regarding the specific milestones that must be met before the initial fees become due. This will help ensure that both parties have a clear understanding of the payment terms and avoid any potential disputes.