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Crestcom Franchise Costs & Fees

Date of Incorporation: 1987
Franchising Since: 1992
Headquarters: Greenwood Village, Colorado

Business Description: The franchisor is Crestcom International, LLC. The franchisor is in the business of developing, producing, and distributing management, sales and personnel development training programs and conducting training seminars. The franchisor also offers franchises for management, sales and personnel development training businesses under the marks “Crestcom” and “Crestcom Trainers to the World,” and related service marks, trademarks and trade names using its system for operating the businesses and related licensed methods of doing business.

Franchise Offer: The franchisor offers a franchise program for the operation of a business which offers management, sales and personnel development training programs and materials.

Financial Assistance: The franchisor may agree to finance a portion of the initial franchise fee. The maximum amount the franchisor finances is generally 50 percent of the initial franchise fee; provided that if the franchisee is located in an area of particular strategic importance to the franchisor, or has significant prior related experience, as determined by the franchisor, upon request the franchisor may agree to finance a larger percentage. Except as described, neither the franchisor nor any agent or affiliate of its offer any direct or indirect financing to franchisees. The franchisor does not guarantee any notes, leases or other obligations of its franchisees.

Training and Assistance: The initial training program consists of an initial classroom training program, lasting approximately three days, and an initial field training program, lasting approximately three to four days. The actual length of the franchisee’s training program and training schedule may be adjusted or waived by the franchisor based on his or her prior experience or training. Franchisees, or, if they are an entity franchisee, the principal owner responsible for the management of the Crestcom Business or another person designated (the “Principal Representative”), and up to two additional individuals designated by franchisees, may participate in the initial training program without charge of a tuition or fee, except that if franchisees are acquiring the Crestcom Business as the result of a transfer, they will be required to pay a transferee training fee of $3,500. A single mandatory Additional Meeting may be held as multiple seminars, conventions, programs, or meetings at various locations or times, such as the annual regional meetings where a separate meeting is held in several different regions. The franchisor may periodically conduct videoconference training programs. The franchisor offers a mentoring program to assist its franchisees which franchisees may participate in at their option.

Territory: Franchisees will operate your Crestcom Business from a specific location that is designated as the “Franchise Location” in the Franchise Agreement. The Franchise Location can be relocated within the Assigned Area upon prior written notice to the franchisor. Franchisees must concentrate their efforts on marketing the Materials within the geographic area described in the Franchise Agreement as it is currently constituted. An Assigned Area is usually part of a state or the entire state where a Crestcom Business is located. Franchisees will not receive an exclusive Assigned Area. Franchisees may face competition from other Franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that it controls.

Term of Agreement and Renewal: The length of the initial franchise term is 7 years. Two successor franchise terms of 7 years each are available, if requirements are met.

Obligations and Restrictions: Franchisees or their Principal Representatives must devote their best, full time efforts toward the management and operation of their Crestcom Businesses. If franchisees are an entity franchisee, their principal owner must be approved by the franchisor in writing prior to serving as the Principal Representative. Franchisees, or if applicable, their Principal Representative, are required to successfully complete the mandatory initial training program. In order to maintain uniformity throughout the system, franchisees must operate their Crestcom Businesses in conformity with the franchisor’s standards and specifications provided in the Procedures Manual or otherwise provided in writing.

Estimated Number of Units: 190

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $69,500 $69,500
Office Lease Costs $0 $500
Fast Start Kit $0 $0
Equipment and Supplies $725 $4,205
Insurance $500 $1,800
Initial Training Expense $0 $1,250
Legal and Accounting $500 $1,500
Shipping Costs; Initial Inventory $200 $700
Marketing Program $7,800 $9,600
Additional Funds (3 months) $5,000 $8,775
ESTIMATED TOTAL $85,345 $101,699
Other Fees
Type of Fee Amount
Royalty Fee 1.5% of Gross Revenues.
Distribution Fee 34% of Gross Revenues, or 24% of Gross Revenues from PSRs under the PSR Program.
Material Costs Will vary, based on the franchisor’s published price list.
Media Access Fee $7 for each media unit or module.
New Materials Surcharge Currently $500 per media unit or module, but may be changed.
Crestcom Sales Academy Program Surcharge Currently $3,500 (less 3% if paid in full at the time franchisees elect to market the Crestcom Sales Academy Program), but may be changed.
Winslow Assessment Fees For franchisees or their Principal Representative, currently $199. For a PSR candidate, currently $37 for initial set-up, plus $179 for a profile for each PSR candidate.
Client Access Fee Currently none. However, the franchisor may charge a fee upon 30 days’ notice to franchisees.
Mandatory Computer System and Program Fee Currently none. However, if the franchisor establishes any Mandatory Computer Systems and Programs, it may charge a fee related to the Mandatory Computer Systems and Programs.
Email Account/Website Fee Currently none. However, the franchisor may in the future charge a fee for providing the e-mail account, the franchisor’s website or both.
Special Needs Access to Materials or Live Instruction Will vary.
Shipping Costs and Taxes Will vary.
Regional Meeting and Annual Convention Fee Will vary.
Audit Fee Cost of inspection or audit. If franchisees commit an Act of Deception (as defined in the Franchise Agreement), $25,000
Transferee Training Fee $3,500
Transfer Fee $16,500
Transfer Assistance Payment $12,500, or $10,000 if the transferee is first identified by the franchisee rather than the Area Representative
Successor Franchise Fee $3,500
Live Instructions Costs Will vary.
New Material and Supplier Approval Actual expenses of approval.
Interest Lesser of 18% per annum or highest rate of interest allowed by law.
Administrative Charge $10 per late fee or payment.
Late Charge 3% of the greater of the (1) Royalty Fee and Distribution Fee owed, or (2) the Minimum Monthly Requirement.
Unreported or Inaccurately Reported Sales or Underpayments Will vary under the circumstances.
Additional and Refresher Training The then current rate.
Costs and Attorney's Fees Will vary under the circumstances.
Indemnification Will vary under the circumstances.

The above information has been taken from the FDD of Crestcom. Year of FDD: 2016

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