When is the initial technology fee due for a Cr3 American Exteriors franchise?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
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4.2. Royalty Fee
You will pay to us a monthly fee equal to the greater of 6.0% of the monthly Gross Revenues (the "Royalty Fee") or $2,000.00 per month (the "Minimum Monthly Royalty"). The Royalty Fee will begin your first month in operation; however, the Minimum Monthly Royalty will not start until the seventh (7th) month after you begin operations.
"Gross Revenues" 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.
4.3. Technology Fee:
You will pay us an initial technology fee of $1,000 prior to attending Initial Training, which will provide you with a one-month license to use our designated technology platform. This technology must be setup before training because it is utilized during our Initial Training program. After Initial Training, you will pay us our then-current monthly technology fee ("Technology Fee"), The current Technology Fee is $1,000 per month and includes a license to utilize a third-party technology platform designed to help businesses streamline their operations, enhance customer exper
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to the 2025 Cr3 American Exteriors Franchise Disclosure Document, the initial technology fee of $1,000 is due prior to attending Initial Training. This fee provides the franchisee with a one-month license to use Cr3 American Exteriors' designated technology platform.
This technology must be set up before training because it is utilized during the Initial Training program. After the initial training, the franchisee will be required to pay the then-current monthly technology fee, which is currently $1,000 per month. This monthly fee includes a license to utilize a third-party technology platform designed to help businesses streamline their operations, enhance customer experiences, and boost their digital presence.
Cr3 American Exteriors reserves the right to change the underlying technology services and adjust the price of the Technology Fee based on third-party vendor price increases, changes in vendors, or changes in technology. The maximum monthly Technology Fee will be the actual third-party vendor costs incurred plus a 10% administrative fee. This means that while the fee is currently set at $1,000 per month, it could fluctuate based on the costs Cr3 American Exteriors incurs from its technology vendors.