Can I request unaudited financial statements of the Cr3 American Exteriors Advertising Fund?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
of $20,000 or 3-5% of Gross Revenue per year on local advertising pursuant to our guidelines. (Franchise Agreement, Section 3.2(B)).
Advertising Fund. We maintain a brand development fund (the "Advertising Fund"). You are required to contribute one percent (1%) of your Gross Revenues per month into our Advertising Fund. Company outlets are not required to contribute to the Advertising Fund. We administer the Advertising Fund. The Advertising Fund will not be audited. Unaudited financial statements of the Advertising Fund will be made available to you upon written request. We will not use Advertising Funds to solicit new franchisees.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 32–37)
What This Means (2025 FDD)
According to Cr3 American Exteriors's 2025 Franchise Disclosure Document, franchisees can request unaudited financial statements of the Advertising Fund. Cr3 American Exteriors maintains a brand development fund, referred to as the "Advertising Fund," where franchisees are required to contribute 1% of their gross revenues monthly. Company-owned outlets are not required to contribute to this fund.
The document specifies that while the Advertising Fund will not be audited, unaudited financial statements will be available to franchisees upon written request. This provides franchisees with a degree of transparency regarding how the advertising funds are being managed and spent.
For the fiscal year ending December 31, 2024, the Advertising Fund spent all but $1,971.56, which represents 3% of the funds and was carried over for use in 2025. This information gives prospective franchisees an idea of the typical financial activity within the Advertising Fund and how leftover funds are handled.