For Cr3 American Exteriors franchisees in Illinois, when is the payment of initial fees deferred?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
Item 5 of the FDD and Item 4 of the Franchise Agreement are modified with the addition of the following language:
"Payment of the Initial Fees will be deferred until Franchisor has met its obligations to franchisee, and franchisee has commenced doing business. This financial assurance requirement was imposed by the Office of the Illinois Attorney General due to Franchisor's financial condition."
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to Cr3 American Exteriors's 2025 Franchise Disclosure Document, for franchises governed by the Illinois Franchise Disclosure Act, the payment of the initial franchise fee is deferred under specific conditions. The initial fee payment is delayed until Cr3 American Exteriors has fulfilled its obligations to the franchisee and the franchisee has commenced business operations.
This financial assurance requirement was mandated by the Office of the Illinois Attorney General due to Cr3 American Exteriors's financial condition. This deferral provides a level of protection for franchisees in Illinois, ensuring that they do not have to pay the initial fee until Cr3 American Exteriors has met its initial obligations and they are ready to start their business.
This modification to Item 5 of the FDD and Item 4 of the Franchise Agreement is specific to Illinois, highlighting the importance of understanding state-specific regulations when investing in a franchise. Prospective franchisees in Illinois should carefully review these modified terms and consult with legal counsel to fully understand their rights and obligations.