When does the Royalty Fee obligation begin for a Cr3 American Exteriors franchisee?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
trade, and any other lawful purposes.
4. Fees
4.1. Initial Franchise Fee
Upon execution of this Agreement, you will pay us an Initial Franchises Fee of $40,000.
The Initial Franchise Fee is non-refundable once we have completed our obligation to provide Initial Training and you have successfully completed Initial Trainin
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to Cr3 American Exteriors's 2025 Franchise Disclosure Document, franchisees are obligated to pay a monthly royalty fee. This fee is calculated as the greater of 6.0% of monthly Gross Revenues or a minimum of $2,000.00 per month.
The 6.0% royalty fee based on gross revenues starts in the franchisee's first month of operation. However, the minimum monthly royalty of $2,000.00 does not commence until the seventh month after the franchisee begins operations.
This means that for the first six months, a Cr3 American Exteriors franchisee will pay the 6.0% royalty on gross revenues, but only if that amount exceeds $2,000. Starting in month seven, the franchisee will pay either 6.0% of gross revenues or $2,000, whichever is higher. This structure allows new franchisees some time to build their revenue before being subject to the minimum royalty payment.