Does Cr3 American Exteriors provide audited financial statements for the Advertising Fund?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
You will contribute one percent (1%) of your Gross Revenues per month into a systemwide advertising fund (the "Advertising Fund"). Franchisor owned outlets do not have to contribute to the Advertising Fund. We administer the Advertising Fund. The Advertising Fund is not audited. Unaudited financial statements of the Advertising Fund will be made available to you upon written request. If not all Advertising Fees are spent in the fiscal year in which they accrue, we will carry over those fees and apply them to the next fiscal year. We will not use Advertising Fees to solicit new franchise sales.
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to Cr3 American Exteriors's 2025 Franchise Disclosure Document, the Advertising Fund is not audited. However, unaudited financial statements of the Advertising Fund will be made available to franchisees upon written request.
Franchisees are required to contribute one percent (1%) of their Gross Revenues per month into this Advertising Fund, which Cr3 American Exteriors administers. It is important to note that franchisor-owned outlets are not required to contribute to the Advertising Fund.
Cr3 American Exteriors uses the Advertising Fund to advise franchisees in their advertising efforts or to conduct advertising themselves through various channels such as online platforms, radio, television, direct mail, billboards, and print media. Advertising may be local, regional, or national, and materials can be produced in-house or through outside agencies. Cr3 American Exteriors is not obligated to spend any specific amount on advertising in a franchisee's particular area or territory and is not required to contribute to the fund itself. If there are unspent Advertising Fees at the end of the fiscal year, they will be carried over to the next fiscal year. The company states that Advertising Fees will not be used to solicit new franchise sales.