Crestcom International Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$91,850 - $104,919
Franchise Fee
$75,000
Min Cash Required
$5,000
Total US Locations
55
Business Summary
Crestcom International, LLC offers franchises for businesses that provide management, sales, and personnel development training programs and materials. These businesses operate under the "CRESTCOM" brand and use licensed methods. Crestcom International, LLC specializes in marketing video media-based, live-facilitated training, such as the Crestcom L.E.A.D.R. training program, which typically involves monthly half-day sessions conducted over a 12-month period. Franchisees can also offer additional programs like the Crestcom Next Generation Sales Academy Program, the Crestcom L.E.A.D.R.+ Program, and the Crestcom International Supervisor Program. Franchisees market training materials and conduct seminars from their residence or another approved franchise location to individuals, companies, and organizations seeking to improve management, sales, and personnel skills.
Corporate History
Crestcom International, LLC was formed as a Delaware limited liability company on December 21, 2007. The company develops, produces, and distributes management, sales, and personnel development training programs. Its predecessor, Crestcom International, Ltd. (CIL), operated a prototype business from 1990 to 1997 and began offering franchises in the United States in April 1992. Crestcom International, LLC began offering its own franchises in January 2008, following its acquisition of substantially all of CIL's assets. The company is owned by Crestcom International Holdings, LLC, which acquired all ownership interest in November 2013.
Financial Overview
Investment Range
$91,850 - $104,919
Franchise Fee (Low)
$75,000
Franchise Fee (High)
$75,000
Minimum Cash Required
$5,000
Royalty %
19.75%
Equipment Costs (Low)
$575
Equipment Costs (High)
$2,000
Working Capital
$6,888
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Crestcom International, LLC's auditors have provided an unqualified opinion on its financial statements, indicating that they present fairly the company's financial position. The company's profitability has fluctuated over the last three years, reporting net losses of $329,810 in 2023 and $476,330 in 2021, but a net income of $211,549 in 2022. Crestcom International, LLC maintains a positive working capital, with current assets exceeding current liabilities. The company believes it is in compliance or has obtained waivers for all applicable loan covenants. Additionally, Crestcom International, LLC received positive financial impacts from a Paycheck Protection Program loan forgiveness in 2021 and an Employee Retention Credit refund in 2023.
Financing Details
Crestcom International, LLC may offer to finance a portion of the initial franchise fee, typically up to 50 percent, as well as some or all of the New Materials surcharge and the Crestcom Next Generation Sales Academy Program surcharge. The availability and amount of financing depend on factors such as the franchisee's location, experience, creditworthiness, and available collateral. If financing is provided, franchisees must sign a Promissory Note, which is usually payable within 60 days of executing the Franchise Agreement. This note will bear interest at a rate between 9% and 12% per year and may require security from the franchise itself or guarantees from the franchisee's officers, directors, shareholders, immediate family members, or Authorized Representatives.
Performance Metrics
Total US Locations
55
Franchised Units
55
Corporate Units
0
Avg Square Footage
100
Franchising Since
2008
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
Crestcom International, LLC has disclosed one arbitration action within the past fiscal year. This action was filed on June 30, 2023, against a former franchisee and area representative for breach of a settlement agreement. No other litigation is required to be disclosed by Crestcom International, LLC.
Bankruptcy History
Crestcom International, LLC has no bankruptcy history to report for itself or its executive officers.
Agreement Terms
Initial Term
7 years
Renewal Term
7 years
Renewal Conditions
To renew their franchise, Crestcom International, LLC franchisees must provide notice at least 120 days before their agreement expires. They must be in full compliance with all terms of their Franchise Agreement and pay a $3,500 successor franchise fee. Franchisees are also required to adapt their CRESTCOM Business operations and facilities to meet the then-current Procedures Manual and Licensed Methods. Additionally, they must sign a new Franchise Agreement, which may have materially different terms, execute a Successor Franchise Rider, and pay any applicable New Materials surcharges.
Training & Support Program
Franchisor Assistance
Crestcom International, LLC provides substantial assistance to its franchisees, starting with a two-day Initial Training Program and an intensive three-day Boot Camp training program focused on sales processes. It also offers advice on selecting equipment and suppliers, recommendations for accounting and reporting systems, and an initial inventory of training materials. On an ongoing basis, Crestcom International, LLC permits franchisees to use its marks and licensed methods. It provides continuous telephone or electronic consultation, periodic market information, sales leads, updates on training techniques, and access to a newsletter and best practices guidelines. The franchisor supports franchisees in engaging qualified salespersons and supplies them with training materials. Franchisees also have the option to participate in a mentoring program. Mandatory annual international conventions and up to one additional meeting per year are required, and the franchisor may offer optional videoconference and online training programs, such as the PERFORM Facilitation Training. Remedial training may be required if a franchisee fails to meet monthly sales goals.
Initial Training Hours
46
Training Location
Virtual, or in-person at Crestcom International, LLC headquarters in Denver, Colorado, or a hotel in another selected metropolitan area.
Ongoing Support
After opening, Crestcom International, LLC franchisees receive continuous telephone or electronic consultation regarding business operations, sales techniques, and marketing materials. They gain access to periodically developed advertising and promotional materials, sales leads, and market information. The franchisor provides ongoing updates on training techniques and licensed methods, publishes newsletters and best practices guidelines, and offers training programs for franchisee employees and agents. Franchisees are supported in engaging salespersons and are supplied with training materials. An optional mentoring program is also available. Franchisees must attend an annual international convention and up to one additional mandatory meeting each year. Optional videoconference and online training programs, such as the PERFORM Facilitation Training, are also offered. If a franchisee fails to meet its monthly sales goals, additional remedial training may be required.
Franchise Requirements
Ideal Candidate Profile
Crestcom International, LLC is seeking franchisees who have prior knowledge and experience in management, sales, or personnel training or related fields. Ideal candidates should possess a strong understanding of financial, tax, and business matters. Franchisees or their designated Principal Representatives are expected to devote their best, full-time efforts to managing and operating their CRESTCOM Businesses. They are responsible for recruiting, hiring, and supervising all Authorized Representatives, including salespersons and telemarketers. All Authorized Representatives must be professional, of good character, and complete necessary training.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
Yes
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
full-time
Territory Type
Protected
Staff Count
2
Territory Size Requirements
Crestcom International, LLC defines its assigned areas based on population. The "Threshold Number" for a territory is one Qualifying Business for each 1 million people, or fraction thereof, in a franchisee's assigned area. A Qualifying Business is one that generates gross revenues from at least 18 attendees of the Crestcom L.E.A.D.R. training program at the recommended U.S. minimum retail price per calendar quarter.
Staffing Notes
Crestcom businesses are primarily home-based, with the franchisee or a designated Principal Representative required to devote full-time effort to management and operations. The business needs one qualified Facilitator to conduct live instruction. Franchisees may optionally engage up to two additional Salespersons, who are Authorized Representatives, to market materials within their Assigned Area. If a Principal Marketing Area is established, there is no limit on the number of Salespersons. Franchisees can also employ up to two additional telemarketing personnel. All Authorized Representatives must be approved by Crestcom, demonstrate professionalism, good character, and complete required training. The franchisee is solely responsible for implementing training for their Authorized Representatives related to legal, safe, and proper work performance, maintaining sole authority over day-to-day operations and employees.