Before beginning operation of an Extreme Art Studio Business, what is the franchisee required to obtain?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
Business Licenses and Permits.
You must obtain all necessary permits and licenses required by applicable law before you begin operation of your Extreme Art Studio Business.
Professional Fees.
We strongly recommend that you hire a lawyer, accountant, or other professional to advise you on this Franchise offering.
Rates for professionals can vary significantly based on area and experience.
Liquor License.
Franchisees are not required to serve or allow alcohol at the Studio.
These amounts are the estimated cost of obtaining a license or permit from a state agency to sell alcoholic
beverages at your Extreme Art Studio Business, but not the price to purchase a liquor license from an existing licensee in states that permit that practice. In some cities/markets, it may be necessary to purchase a liquor license. In our experience to date, the cost to obtain a liquor license will vary substantially, depending on the city and state in which the Studio is located and the variety of liquor types being sold.
| Type of Expenditure (1) | Amount | Method of Payment | When Due | To Whom Payment is to be Paid(1) | |
|---|---|---|---|---|---|
| Low | High | ||||
| Business Licenses | $50 | $300 | As Incurred | As Incurred | Third Parties |
| and Permits(5) | |||||
| Professional Fees(6) | $1,000 | $2,500 | As Incurred | As Incurred | Attorney, Accountant |
| Liquor License(20) | $0 | $15,000 | As Incurred | As Incurred | Third Parties, Government Agencies |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–23)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, before commencing operations, franchisees must secure all necessary permits and licenses as mandated by applicable law. The estimated cost for business licenses and permits ranges from $50 to $300, payable to third parties as incurred.
Additionally, while not explicitly required, Extreme Art Studio strongly recommends that franchisees engage professional advisors such as lawyers and accountants to assist with the franchise offering. The fees for these professionals can vary significantly based on their location and level of experience, with estimated costs ranging from $1,000 to $2,500. These fees are paid directly to the attorney or accountant as services are rendered.
Furthermore, if a franchisee intends to serve alcohol at their Extreme Art Studio, they must obtain the necessary liquor licenses or permits from a state agency. The cost for a liquor license is estimated to be between $0 and $15,000, paid to third parties or government agencies as incurred. The actual cost can vary significantly depending on the city and state where the studio is located and the types of liquor being sold. It's important to note that this estimate does not include the cost of purchasing a liquor license from an existing licensee in states where that practice is permitted.