About Crestcom InternationalSD Franchise
Crestcom International is a leadership development and management training franchise under parent company Crestcom International Holdings, LLC, offering area representative opportunities since 2008.
Area representatives build and manage a network of Crestcom trainers within their territory, overseeing the delivery of the brand's interactive, video based leadership training programs to corporate clients.
The initial area representative fee typically ranges from $225,000 to $450,000 and is negotiated based on the territory.
Crestcom InternationalSD Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $225,000 to $450,000 | One-time payment upon signing |
| Royalty Fee | 19.75% of Gross Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | None specified as a percentage of gross sales | National brand fund |
| Total Investment Range | $231,575 – $512,575 | Includes build-out, inventory, working capital |
The investment range of $232K–$513K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (19.75% of Gross Revenues) and marketing fee (None specified as a percentage of gross sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Area Representative Fee | $225,000 | $450,000 |
| Conversion Fee Payment | $0 | $45,000 |
| Office Lease Costs | $0 | $500 |
| Equipment and Supplies | $575 | $2,000 |
| Vehicle | $0 | $3,000 |
| Insurance | $500 | $1,800 |
| Legal and Accounting | $500 | $1,500 |
| Additional Funds (3 months) | $5,000 | $8,775 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | The greater of $20,000 or 5% of the total consideration received for the transfer of the Area Representative Agreement |
| Renewal Fee | $16,500 |
| Technology Fee | Currently none, but may be charged in the future. |
| Regional Meeting and Annual International Convention Fee | Will vary (not more than $550 per attendee in 2022) |
| E-mail Account / Website Fee | Currently none, but may be charged in the future |
| Transferee Training Fee | $3,500 |
| 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 any amounts you owe us that are not paid when due |
| Additional and Refresher Training | $500/day |
| Costs and Attorneys’ Fees | Will vary under circumstances |
| Indemnification | Will vary under circumstances |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Half day (4 hours classroom) |
| Classroom Training | 4 |
| On-the-Job Training | 0 |
| Training Location | Virtually (via internet, telephone, or similar communications method), or in-person in the Denver, Colorado, U.S.A. metropolitan area or another location selected by us. |
| Additional Training | Area Representatives or their Principal Representative must attend mandatory annual international conventions and up to one additional mandatory meeting each year. They must also participate in any mandatory videoconference, virtual, and online training programs. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | A U.S. Territory may be a part of a state, an entire state, or multiple states. The minimum size of a U.S. Territory will be an area that we determine can reasonably be serviced by three CRESTCOM Businesses. |
| Description | Area Representatives receive an exclusive territory to operate their Area Representative Business, provided they remain in compliance with the agreement. The territory size is determined by Crestcom to reasonably accommodate at least three CRESTCOM Businesses. While exclusive for the Area Representative, other franchisees or Crestcom itself may operate within it, and Area Representatives cannot conduct marketing activities outside their designated territory without approval. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 7 years |
| Renewal Term | Up to 3 successor terms of 7 years each |
| Renewal Fee | $16,500 |
| Renewal Conditions | Notice at least 120 days prior to expiration, compliance with Area Representative Agreement, pay successor area representative fee, modify business to comply with then-current Procedures Manual, execute new Area Representative Agreement (which may have materially different terms), execute a Successor Rider with a general release (subject to state law), and other conditions. |
| Transfer Fee | The greater of $20,000 or 5% of the total consideration received for the transfer of the Area Representative Agreement |
| Transfer Conditions | 30 days prior written notice, all amounts due paid, transferee completes initial training and pays $3,500 transferee training fee, transferee assumes obligations or signs new agreement, transferee meets qualifications, consent/transfer agreement with general release signed, Franchise Agreement transferred concurrently, and agreement to abide by post-termination covenants. |
| Termination for Cause | Crestcom can terminate for various reasons, including unauthorized disclosure of confidential information, abandonment of the business, insolvency or bankruptcy, unsatisfied judgments, criminal conviction of the Area Representative or Principal Representative, sexual harassment or discrimination, failure to make payments or provide reports (10 days notice), failure to meet Development Obligations or Minimum Quarterly Production Obligations (10 days notice), misuse of Marks (10 days notice), three notices of default, unauthorized transfer, unauthorized conduct of training sessions, unauthorized solicitation of Authorized Representatives, marketing outside the Territory, unauthorized purchase/sale/duplication/modification of Materials, violation of non-compete, failure to complete training, inadequate guaranties, Patriot Act violation, noncompliant legal actions, or breach of related agreements. |
| Non-Compete Period | 30 months |
| Non-Compete Details | During the term, the Area Representative and its affiliates are prohibited from having a direct or indirect controlling interest in or performing services for a 'Competitive Business'. After termination or expiration, for 30 months, they are prohibited from having any direct or indirect interest in a 'Competitive Business' located or operating within the Territory or any other franchised/licensed business of Crestcom, and from diverting business or employees. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Area Representatives or their Principal Representatives must devote their best, full-time efforts to the management and operations of their Area Representative Businesses. If the Area Representative is an entity, the Principal Representative must be approved in writing by Crestcom and successfully complete the initial training program for a CRESTCOM Business and the Area Representative Certification Training. |
| Required Suppliers | Area Representatives must purchase or otherwise acquire all items used in their Area Representative Businesses from suppliers designated or approved by us. We are currently the only approved supplier of the Franchise Briefing video. |
| Supply Restrictions | Area Representatives cannot buy or sell Materials or Promotional Materials from or to any other current or former Franchisee or Area Representative without written consent. They are prohibited from contacting individuals featured in Crestcom Materials for business purposes and may not modify Promotional Materials or Materials without prior written consent. |
| Franchisor Revenue from Suppliers | $82,480 (approximately 1.34% of total revenues) from Materials and other items sold to Franchisees and Area Representatives in the United States during the fiscal year ending December 31, 2022. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Crestcom typically finances a portion of the Initial Area Representative Fee, generally up to 50%, but potentially more based on strategic importance or prior experience. Financing is dependent on location, experience, creditworthiness, available funds, collateral, and market considerations. A Promissory Note, secured by the Area Representative Business rights or guaranteed by acceptable persons, is executed. The note is typically payable in a lump sum within 30 days of the Trigger Date (no later than one year from the agreement date) and usually bears no interest during this year. |
Crestcom InternationalSD Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Crestcom InternationalSD Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Crestcom InternationalSD System Growth
Crestcom InternationalSD currently operates 25 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 3 | 25 |
| 2021 | 1 | 1 | 25 |
| 2022 | 1 | 1 | 25 |
Transfers: 0 | Closures: 1
State Registrations
Registered in 48 states: AL, AK, AZ, AR, CA, CO, CT, DE, DC, GA, FL, HI, ID, IL, IN, IA, KS, KY, LA, ME, MA, MN, MI, MS, MO, MT, NE, NV, NH, NJ, NM, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WI, WV, WY
Franchisor Financials (Item 21)
Audited by CliftonlarsonAllen LLP for year ending December 31.
Crestcom InternationalSD Franchise — FAQ
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