About Crestcom InternationalIL Franchise
Crestcom International is a professional development franchise specializing in management, sales, and leadership training for businesses.
The brand delivers structured training programs that combine live facilitation with video based content, helping organizations develop stronger leaders and more effective teams.
Crestcom has been franchising since 2008 under the umbrella of Crestcom International Holdings, LLC, with an area representative fee ranging from $225,000 to $450,000.
Crestcom InternationalIL 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 | 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) 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 |
| Audit Fee | None disclosed |
| Regional Meeting and Annual International Convention Fee | Will vary (not more than $550 per attendee for 2022) |
| E-mail Account / Website Fee | Currently none, but may be charged in the future |
| 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 hours |
| On-the-Job Training | 0 hours |
| Training Location | Virtually (via the 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 Representatives must attend any mandatory Additional Meetings, including the annual international convention each year, and up to one additional mandatory meeting. 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 | Part of a state, an entire state, or multiple states, minimum size to be serviced by three CRESTCOM Businesses |
| Description | Area Representatives receive an exclusive territory for their Area Representative Business, contingent on meeting Development Obligations and Minimum Quarterly Production Obligations. While exclusive for the Area Representative, other franchisees or Crestcom itself may identify and introduce prospective franchisees within the territory, affecting commission structures. |
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 and operations 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 | Provide 30 days' written notice, ensure all amounts due are paid, transferee completes training, pays transferee training fee and transfer fee, signs current Area Representative Agreement or assumes obligations, signs Agreement and Consent to Transfer, signs general release (subject to state law), and agrees to post-termination covenants. |
| Termination for Cause | Crestcom can terminate without opportunity to cure for reasons such as unauthorized disclosure, abandonment, insolvency, criminal conviction, sexual harassment/discrimination, repeated noncompliance, unauthorized transfer, or violation of non-compete. Termination with 30 days' notice (with cure period) applies to other breaches like failure to maintain standards, insurance, or comply with manuals. |
| Non-Compete Period | 30 months |
| Non-Compete Details | During the term and for 30 months after termination/expiration, Area Representatives and their principals are prohibited from having any direct or indirect interest in, or performing services for, a Competitive Business located or operating within any Area Representative Business Territory or other franchised/licensed business of Crestcom. This also includes non-diversion of business/employees and non-interference with Crestcom's relationships. |
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 an entity, the Principal Representative must be approved in writing 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 sole approved supplier of all of the audio, video, and online media included in the Materials. |
| Supply Restrictions | Area Representatives must obtain approval for new materials, services, or suppliers. Approval may be withheld, and there are no written criteria for approval. Approval of suppliers may be revoked. 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. |
| Franchisor Revenue from Suppliers | $82,480 (approximately 1.34 percent of total revenues) consisted of revenues derived 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 an Area Representative’s Initial Area Representative Fee, generally up to 50%, with potential for more based on strategic importance or experience. A Promissory Note, substantially in the form of Attachment C, is executed, typically payable in a lump sum within 30 days of the Trigger Date (no later than one year from the Area Representative Agreement date), and usually bears no interest during this year. The note is secured by collateral, including rights in the Area Representative Business, or guaranteed by acceptable persons. |
Crestcom InternationalIL Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Crestcom InternationalIL 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 InternationalIL System Growth
Crestcom InternationalIL 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 InternationalIL Franchise — FAQ
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