Under what conditions can Cr3 American Exteriors change the monthly Technology Fee?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
ty Fee will begin your first month in operation; however, the Minimum Monthly Royalty will not start until the seventh (7th) month after you begin operations.
"Gross Revenues" shall mean all revenues that you derive or receive, directly or indirectly, from the operation of the Franchised Business excluding only sales and use taxes.
4.3. Technology Fee:
You will pay us an initial technology fee of $1,000 prior to attending Initial Training, which will provide you with a one-month license to use our designated technology platform. This technology must be setup before training because it is utilized during our Initial Training program. After Initial Training, you will pay us our then-current monthly technology fee ("Technology Fee"), The current Technology Fee is $1,000 per month and includes a license to utilize a third-party technology platform designed to help businesses streamline their operations, enhance customer exper
Source: Item 23 — RECEIPTS (FDD pages 53–150)
What This Means (2025 FDD)
According to Cr3 American Exteriors' 2025 Franchise Disclosure Document, the company reserves the right to change the monthly Technology Fee under specific circumstances. The current Technology Fee is $1,000 per month, which includes a license to use a third-party technology platform.
Cr3 American Exteriors can adjust the price of the Technology Fee if there are price increases from the third-party vendor, changes in the vendors providing the technology services, or changes in the technology itself. This means that if the cost for Cr3 American Exteriors to provide the technology platform increases, they may pass those costs on to the franchisee.
However, the FDD stipulates that the maximum monthly Technology Fee will be the actual third-party vendor costs incurred by Cr3 American Exteriors, plus a 10% administrative fee. This provides some transparency and limits how much the fee can increase, as it directly relates to the costs Cr3 American Exteriors incurs from the technology vendor, plus a small administrative charge.