When does the Minimum Monthly Royalty Fee begin 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) | |||
| Royalty Fee | The greater of (i) 6.0% of monthly Gross Revenue collected (the “Royalty Fee”) or (ii) $2,000.00 (the “Minimum Royalty Fee”). (Note 3) | By the 10th day of the month. | Royalty Fee’s start the first month in operation; however, the Minimum Monthly Royalty Fee, if applicable, will not begin until the 7th month of operation. Payments are due on |
Source: Item 6 — OTHER FEES (FDD pages 18–20)
What This Means (2025 FDD)
According to Cr3 American Exteriors's 2025 Franchise Disclosure Document, franchisees must pay a royalty fee, which is the greater of 6.0% of monthly Gross Revenue collected or a Minimum Royalty Fee of $2,000. The standard Royalty Fee payments begin the first month of operation. However, the Minimum Monthly Royalty Fee does not begin until the 7th month of operation.
This delayed start to the Minimum Monthly Royalty Fee provides a grace period for new Cr3 American Exteriors franchisees. During the first six months, franchisees only pay the 6.0% royalty on Gross Revenue if it is less than $2,000. This can significantly reduce the financial burden on new franchisees as they start and grow their business.
After the initial six months, the Minimum Monthly Royalty Fee of $2,000 kicks in. This means that even if 6.0% of the Gross Revenue is less than $2,000, the franchisee must still pay the $2,000 minimum. This ensures that Cr3 American Exteriors receives a baseline royalty payment from each franchise unit, regardless of its initial revenue. All Royalty Fee payments are due by the 10th day of the month.