What is the minimum monthly Royalty Fee that a Cr3 American Exteriors franchisee must pay?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
trade, and any other lawful purposes.
4. Fees
4.1. Initial Franchise Fee
Upon execution of this Agreement, you will pay us an Initial Franchises Fee of $40,000.
The Initial Franchise Fee is non-refundable once we have completed our obligation to provide Initial Training and you have successfully completed Initial Trainin
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to Cr3 American Exteriors's 2025 Franchise Disclosure Document, franchisees are required to pay a monthly royalty fee. This fee is calculated as the greater of 6.0% of the monthly Gross Revenues or a minimum of $2,000.00 per month.
However, the stipulation to pay the Minimum Monthly Royalty does not commence immediately. Franchisees are not required to pay the $2,000 minimum monthly royalty until the seventh month of operation. This provides a grace period during the initial months of business, potentially allowing franchisees to establish their operations and revenue streams before the minimum royalty fee takes effect.
In practical terms, this means that for the first six months, a Cr3 American Exteriors franchisee will pay 6% of their gross revenues as a royalty fee, if that amount is less than $2,000. Starting in the seventh month, they will pay either 6% of gross revenues or $2,000, whichever is higher. This structure ensures that Cr3 American Exteriors receives a consistent minimum income from each franchise location while also allowing the royalty to scale with the franchisee's success.