Will Cr3 American Exteriors use Advertising Funds to solicit new franchisees?
Cr3_American_Exteriors Franchise · 2025 FDDAnswer from 2025 FDD Document
of $20,000 or 3-5% of Gross Revenue per year on local advertising pursuant to our guidelines. (Franchise Agreement, Section 3.2(B)).
Advertising Fund. We maintain a brand development fund (the "Advertising Fund"). You are required to contribute one percent (1%) of your Gross Revenues per month into our Advertising Fund. Company outlets are not required to contribute to the Advertising Fund. We administer the Advertising Fund. The Advertising Fund will not be audited. Unaudited financial statements of the Advertising Fund will be made available to you upon written request. We will not use Advertising Funds to solicit new franchisees.
In our last fiscal year endin
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 32–37)
What This Means (2025 FDD)
According to Cr3 American Exteriors's 2025 Franchise Disclosure Document, the franchisor states that it will not use advertising funds to solicit new franchisees.
Cr3 American Exteriors maintains a brand development fund, called the "Advertising Fund." Franchisees are required to contribute one percent (1%) of their gross revenues per month into this fund. Company outlets, however, are not required to contribute. Cr3 American Exteriors administers the Advertising Fund, and while it will not be audited, unaudited financial statements will be available to franchisees upon written request.
The FDD states that in the last fiscal year ending December 31, 2024, the Advertising Fund spent all of its funds except for $1,971.56, which was 3% of the total funds. This remaining balance was carried over for use in 2025. This information is useful for prospective franchisees to understand how the advertising fees are managed and allocated, and to confirm that the funds are used for purposes other than soliciting new franchisees.