What are the acceptable methods of payment for the Royalty fee for an Extreme Art Studio franchise?

According to the 2024 Franchise Disclosure Document, Extreme Art Studio requires franchisees to pay all fees, including the royalty fee, via EFT (electronic funds transfer) or other similar means. As a prospective franchisee, you would be required to complete an EFT authorization form. However, Extreme Art Studio retains the right to require an alternative payment method or payment frequency for any fees owed under the Franchise Agreement.

Extreme Art Studio may receive information regarding your Gross Sales through the Computer System. If Extreme Art Studio ever ceases to have access to this information, and you fail to report your Gross Sales when due, Extreme Art Studio may debit your designated account for an estimated Royalty and Brand Fund Contribution on the date it is due. Extreme Art Studio will debit your designated account one hundred ten percent (110%) of the average of the last three Royalty payments and Brand Fund Contributions that Extreme Art Studio debited.

If the amounts that Extreme Art Studio debits from your designated account are less than the amounts you actually owe (once Extreme Art Studio has determined your true and correct Gross Sales), Extreme Art Studio will debit your designated account for the balance on the day they specify. If the amounts that Extreme Art Studio debits from your designated account are greater than the amounts you actually owe, Extreme Art Studio will credit the excess against the amounts they otherwise would debit from your designated account on the next payment due date. This means that while EFT is the standard method, Extreme Art Studio has the flexibility to change the payment method or frequency during the term of the agreement.