Does Cr3 American Exteriors reserve the right to modify payment methods and schedules?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
Recurring fees, including Royalty payments, and reports are due by the 10th of each month. We reserve the right to modify the payment methods and schedule in our Manuals. We reserve the right to deduct monies that you owe to us from monies that we pay to you and pay you the net amount owed to you or charge you any net amount you may owe to us. Before you may open for business, you will execute an Automatic Bank Draft Authorization in a form substantially similar to that in Schedule 3.
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to Cr3 American Exteriors's 2025 Franchise Disclosure Document, Cr3 American Exteriors retains the right to modify payment methods and schedules. Specifically, the FDD states that recurring fees and reports, including royalty payments, are due by the 10th of each month. However, Cr3 American Exteriors explicitly reserves the right to modify these payment methods and schedules within their manuals.
This provision grants Cr3 American Exteriors the flexibility to adapt payment processes as needed, which could be influenced by factors such as technological advancements or changes in business operations. For a franchisee, this means that the established payment methods and deadlines could be altered during the term of the agreement. Franchisees should stay informed of any updates to the manuals to ensure compliance with the current payment terms.
Furthermore, the FDD indicates that franchisees are required to execute an Automatic Bank Draft Authorization before opening for business, using a form similar to the one provided in Schedule 3. This suggests that Cr3 American Exteriors prefers to have payments made via automatic bank drafts, but the right to modify payment methods allows for potential changes to this preference in the future. Franchisees should be prepared for possible adjustments to how and when they are required to remit payments to Cr3 American Exteriors.