How often is the franchise fee revenue amortized for Cr3 American Exteriors?

According to the 2025 FDD, Cr3 American Exteriors amortizes its franchise fee revenue monthly over a ten-year period. This amortization is based on the contract signing date.

This means that instead of recognizing the entire franchise fee as revenue upfront, Cr3 American Exteriors recognizes a portion of it each month for ten years. This accounting practice aligns with Financial Accounting Standards Board (FASB) codification Topic 606, which dictates how revenue from contracts with customers should be recognized.

For a prospective Cr3 American Exteriors franchisee, this accounting practice has no direct financial impact on their business operations. However, it provides insight into how the franchisor manages its revenue recognition and ensures compliance with accounting standards. This can be a sign of a well-managed and transparent franchise organization.