When is the Royalty Fee due for a Cr3 American Exteriors franchise?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE (Note 2) | REMARKS |
|---|---|---|---|
| (Note 1) | |||
| Royalty Fee | The greater of (i) 6.0% of monthly Gross Revenue collected (the “Royalty Fee”) or (ii) $2,000.00 (the “Minimum Royalty Fee”). (Note 3) | By the 10th day of the month. | Royalty Fee’s start the first month in operation; however, the Minimum Monthly Royalty Fee, if applicable, will not begin until the 7th month of operation. Payments are due on |
| TYPE OF FEE | AMOUNT | DUE DATE (Note 2) | REMARKS |
| --- | --- | --- | --- |
| (Note 1) | |||
| Credit Card Processing Fee | Then current rate charged by third- party credit card processor. | At time of charge | You agree to pay a credit card processing fee if you pay any sums to us by credit card, to the extent permitted by law. |
| Insufficient Funds Fee | $50 per transaction. | As incurred | You agree to pay this fee to us if an electronic transfer or other payment from you to us is declined. |
| Interest | Highest applicable legal rate not to exceed 12% per annum on amounts you owe. | As incurred | Applies to all Royalty Fees, Technology Fee, Advertising Fund contributions and any other amounts that are past due for more than 5 days. |
| Audit Fee | Cost of audit plus 18% interest per annum on underpayment and $50 per month late payment. | As invoiced | Payable if an audit discloses an under reporting of Gross Revenues or underpayment to us by 2% or more. |
Source: Item 6 — OTHER FEES (FDD pages 18–20)
What This Means (2025 FDD)
According to Cr3 American Exteriors's 2025 Franchise Disclosure Document, the Royalty Fee is due by the 10th day of the month. The Royalty Fee is the greater of 6.0% of monthly Gross Revenue collected or $2,000.00 (the Minimum Royalty Fee).
Cr3 American Exteriors franchisees will begin paying royalties starting the first month of operation. However, the Minimum Monthly Royalty Fee, if applicable, will not begin until the 7th month of operation. This means that for the first six months, franchisees pay 6% of gross revenue if it exceeds $2,000, but are not obligated to pay the minimum if their revenue is lower.
In addition to the Royalty Fee, Cr3 American Exteriors also collects other fees such as a Credit Card Processing Fee, Insufficient Funds Fee, Interest, and Audit Fee. The Credit Card Processing Fee is due at the time of charge, the Insufficient Funds Fee and Interest are due as incurred, and the Audit Fee is due as invoiced. Interest applies to all Royalty Fees, Technology Fees, Advertising Fund contributions, and any other amounts that are past due for more than 5 days, at the highest applicable legal rate not to exceed 12% per annum.