Is Cr3 American Exteriors required to contribute to the Advertising Fund?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
omotional programs and that we create, offer or advertise.*
- (iii) Your advertising must comply with federal, state, and local laws.
- (iv) We recommend you spend the greater of (a) 2-3% of Gross Revenue or (b) a minimum of $20,000 per year, on local advertising and promotional efforts, pursuant to our guidelines.
B. Participation in Advertising Fund
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.
3.3. Our Obligation to Conduct Advertising
We use monies in the Advertising Fund to advise you in the conduct of advertising or conduct advertising ourselves using online, radio, television, direct mail, billboards, print or other advertising. We may use local, regional, or national advertising. We may produce advertising material in-house or though outside agencies. We are not required to spend any amount on advertising in the area or Territory where you will be located. We are not required to contribute to the fund.
3.4. Corporate Website.
We will develop and maintain a comprehensive website that contains your location's contact information.
3.5. Digital Marketing.
We have the sole right to control all aspects of any digital marketing including all digital marketing related to your Franchised Business. We may create, operate and promote websites, social media accounts (including, but not limited to, Facebook, Twitter, and Instagram), applications, digital advertising (including pay-per-click and display ads) or other means of digital marketing to promote the brand, Franchised Business, Marks, and franchise opportunities.
3.6. Digital Campaigns.
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to Cr3 American Exteriors' 2025 Franchise Disclosure Document, franchisees are required to contribute to the advertising fund, but Cr3 American Exteriors is not. Franchisees must contribute one percent (1%) of their gross revenues per month to the system-wide 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, radio, television, direct mail, billboards, and print. These advertising efforts may be local, regional, or national. Cr3 American Exteriors has the discretion to produce advertising material in-house or through outside agencies.
However, Cr3 American Exteriors is not required to spend any specific amount on advertising in the franchisee's area or territory. Additionally, Cr3 American Exteriors is not required to contribute to the advertising fund itself. This means that while franchisees are mandated to contribute a portion of their revenue, the franchisor has no such obligation. This could be a point of concern for potential franchisees, as the franchisor's lack of contribution might affect the overall advertising budget and strategies.
Cr3 American Exteriors will develop and maintain a comprehensive website that contains the franchisee's location contact information. Cr3 American Exteriors also has sole control over all aspects of digital marketing, including websites, social media, and digital advertising, to promote the brand, franchised business, marks, and franchise opportunities. Franchisees may participate in digital campaigns, such as Google AdWords, but must pay their pro-rata share either directly to the vendor or reimburse Cr3 American Exteriors if they are paying the vendor. Cr3 American Exteriors will also supply franchisees with templates of flyers, coupons, and other print material at their discretion and as required under their marketing plan.