When does the Minimum Monthly Royalty obligation begin for a Cr3 American Exteriors franchisee?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
0.00 monthly 7 2,000.00 monthly 8 2,000.00 monthly 9 2,000.00 monthly 10 2,000.00 monthly## SCHEDULE 1-TERRITORY
Your territory shall be as follows:
SCHEDULE 2-MINIMUM REQUIREMENTS
Growth is key. You must use commercially reas
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to the 2025 Cr3 American Exteriors Franchise Disclosure Document, franchisees are obligated to pay a minimum monthly royalty fee starting in the seventh month after the execution of the Franchise Agreement. This minimum monthly royalty is set at $2,000.00.
This means that for the first six months of operation, a Cr3 American Exteriors franchisee will pay either 6.0% of their monthly Gross Revenues or the Minimum Monthly Royalty, whichever is greater. After the initial six months, the franchisee is obligated to pay at least $2,000.00 per month as a royalty fee, even if 6.0% of their gross revenues is less than that amount.
This structure is designed to provide some initial relief to new franchisees as they start their business, allowing them time to build revenue before the minimum royalty kicks in. However, it also ensures that Cr3 American Exteriors receives a consistent royalty income from each franchise location after the initial startup phase. Franchisees should carefully consider their projected revenues for the first year to understand the financial impact of this escalating royalty structure.