When is the Insufficient Funds Fee due for a Cr3 American Exteriors franchise?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE (Note 2) | REMARKS |
|---|---|---|---|
| (Note 1) | |||
| Credit Card Processing Fee | Then current rate charged by third- party credit card processor. | At time of charge | You agree to pay a credit card processing fee if you pay any sums to us by credit card, to the extent permitted by law. |
| Insufficient Funds Fee | $50 per transaction. | As incurred | You agree to pay this fee to us if an electronic transfer or other payment from you to us is declined. |
Source: Item 6 — OTHER FEES (FDD pages 18–20)
What This Means (2025 FDD)
According to Cr3 American Exteriors' 2025 Franchise Disclosure Document, the Insufficient Funds Fee is due as incurred. This means that if a franchisee's electronic transfer or other payment to Cr3 American Exteriors is declined, the franchisee will immediately owe the $50 Insufficient Funds Fee.
This fee is fairly standard in franchising and other business relationships. It is designed to cover the administrative costs Cr3 American Exteriors incurs when a payment is rejected. Franchisees should ensure they have sufficient funds available when making payments to avoid this fee.
Furthermore, the FDD states that Cr3 American Exteriors requires franchisees to execute an Automatic Bank Draft Authorization and pay most fees via ACH electronic funds transfer. This means Cr3 American Exteriors will automatically debit the franchisee's bank account for fees and payments. Franchisees must also sign and deliver all bank documents needed to permit Cr3 American Exteriors to debit their bank account via ACH Electronic Transfer for all fees and payments due to them before they open for business. If a franchisee changes their bank account or transfers their account to a different bank, they must notify Cr3 American Exteriors within one day, and sign and deliver new documents to permit Cr3 American Exteriors to debit their bank account within three days.