Crestcom Franchise Costs, Fees & FDD

Year Business Began: 1987

Franchising Since: 1992

Headquarters: Greenwood Village, Colorado

Estimated Number of Units: 170

Franchise Description: The franchisor is Crestcom International, LLC. The franchisor is offering a franchise program for the operation of a business which offers management, sales and personnel development training programs and materials.
Training Overview: The initial training program is a classroom or virtual training program lasting approximately two days. On completion of the initial training program, franchisees will be allowed a period of approximately 30 days to execute their initial business start-up activity and familiarize themselves with all scripts and procedures, after which they will be expected to attend “LaunchPad to Success” training. LaunchPad to Success is an intensive three or four-day training program that examines the skills required to execute all aspects of the Crestcom sales process. Franchisees (or if they are an entity franchisee, the principal owner) of the franchise responsible for the management of the Crestcom business or another person they designate (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 for transfer. The franchisor also conducts from time to time seminars, international or regional conventions, continuing development programs or other meetings. Franchisees or their principal representative must attend any mandatory additional meetings the franchisor conducts, including its international convention each year.

Territory Granted: Franchisees will operate their 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 territory. 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. When the number of “qualifying businesses” in the assigned area reaches the “threshold number,” the franchisor will refrain from adding additional Crestcom business franchises or its own Crestcom businesses in the assigned area. If, after attaining the threshold number, the number of qualifying businesses in the assigned area falls below the threshold number, then without further notice to franchisees the franchisor may resume adding franchised Crestcom businesses or its own Crestcom businesses in the assigned area.

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 and the Boot Camp training program. In addition to themselves or their principal representative, as applicable, they may, at their option and with the franchisor’s prior written consent, engage up to two individuals who are acceptable to the franchisor as authorized representatives who are authorized to market the materials in the assigned area. 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. After the third full calendar quarter following the execution of the first Franchise Agreement, franchisees will be required to meet and maintain minimum production goals.

Term of Agreement and Renewal: The length of the initial franchise term is seven years. Up to three successor franchise terms of seven years each are available if requirements are met.

Financial Assistance: The franchisor may agree to finance a portion of the initial franchise fee. The maximum amount the franchisor finances is generally 50% of the initial franchise fee. The franchisor may also agree to finance some or all of the new materials surcharge and Crestcom Next Generation Sales Academy Program surcharge. Whether the franchisor will provide franchisees any financing and the amount of financing it will provide are dependent on the franchisee’s location, the franchisee’s experience in marketing or conducting training programs, the franchisee’s creditworthiness, the funds available to the franchisor, the collateral available to secure the loan and various market considerations. If franchisees have served as a veteran of the armed forces of the United States, they may be eligible to receive a discount of 10% off of the initial franchise fee that would otherwise be due.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$75,000	$75,000
Distribution Fee	$2,625	$2,625
Office Lease Costs	$0	$500
Fast-Start Kit	$0	$0
Equipment and Supplies	$575	$2,000
Insurance	$350	$900
Travel and Living Expenses During Initial Training	$0	$2,569
Seminar Expense	$0	$1,250
Legal and Accounting	$500	$1,500
Shipping Costs; Initial Inventory	$0	$200
Marketing Program	$7,800	$9,600
Additional Funds (3 months)	$5,000	$8,775
ESTIMATED TOTAL	$91,850	$104,919

Other Fees

Type of Fee	Amount
Royalty Fee	19.75% of gross revenues.
Distribution Fee	$875 per month.
Materials Costs	Will vary, based on the franchisor’s or its approved supplier’s published price list.
New Materials Surcharge	Currently $500 per media unit or module, but may be changed.
Crestcom International Supervisor Program Surcharge	Currently none. However, the franchisor may in the future charge a surcharge if franchisees elect to market the Crestcom International Supervisor Program.
Crestcom Next Generation 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.
Crestcom L.E.A.D.R.+ Surcharge	Currently none. However, the franchisor may in the future charge a surcharge if franchisees elect to market the Crestcom L.E.A.D.R.+ Program.
Crestcom L.E.A.D.R.+ Catalogue Surcharge	Currently none. However, the franchisor may in the future charge a surcharge if franchisees elect to the market the Crestcom L.E.A.D.R.+ Catalogue.
360 Assessment	Currently $50 per assessment and corresponding report.
Client Access Fee	Currently none. However, the franchisor may charge a fee upon 30 days’ notice to franchisees.
PRO Facilitation Certification	Currently none for franchisees and up to two other facilitators. However, the franchisor may in the future establish fees for PRO Facilitation Certification.
PERFORM Facilitation Training	Currently none. However, the franchisor may in the future establish fees for PERFORM Facilitation Training.
Customer Relationship Management Software	The franchisor currently pays for this software, under its account, on behalf of incoming franchisees for 12 months. After the first 12 months, franchisees will be required to pay the franchisor the monthly fee imposed by the third party supplier for this software, which the franchisor will then pay to the supplier. The supplier’s rate is currently in the range of $45 to $48 per month.
Crestcom Learning Portal (CLP) Software	Currently none. However, the franchisor may in the future charge a fee for ongoing license fees per user starting upon 30 days’ notice to franchisees.
Mandatory Computer System and Program Fee	Currently none, other than the customer relationship management software license fee described above and (if collected) the CLP software fee described above.
E-mail 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.
Digital / E-mail Marketing Service	Franchisees must pay the rate charged by the third party supplier, which currently ranges from $0 to $299 per month. Most Crestcom franchisees use the free account.
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.
Transfer Fee	$16,500
Transferee Training Fee	$3,500
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 Instruction 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 Fee	$10 per late fee or payment.
Late Charge	3% of the amount due.
Unreported or Inaccurately Reported Sales or Underpayments	Will vary under circumstances.
Missed Training Fee	$200
Additional and Refresher Training	The then current rate.
Costs and Attorneys’ Fees	Will vary under circumstances.
Indemnification	Will vary under circumstances.

The above information has been compiled from the FDD of Crestcom International. Year of FDD: 2025.
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