Besides the $10,000, what other costs are associated with the Transfer Fee for an Extreme Art Studio franchise?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 6: OTHER FEES]
| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer Fee | $10,000 per Extreme Art Studio Business, plus cost of any applicable broker fees and training | $1,000 non refundable deposit at time of transfer application submittal and remaining balance when you execute the transfer documents | Payable only in connection with the transfer of each of your Extreme Art Studio Businesses, a transfer of ownership of your legal entity, or the Franchise Agreement. |
| Broker Fees | Our actual cost of the brokerage commissions, finder's fees or similar charges | As incurred | If you transfer your Extreme Art Studio Business to a third party or purchaser, you must reimburse all of our actual costs for commissions, finder's fees and similar charges. |
Source: Item 6 — OTHER FEES (FDD pages 13–18)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, the transfer fee involves additional costs beyond the initial $10,000. Specifically, a franchisee may incur costs for broker fees and training.
The transfer fee is payable when transferring an Extreme Art Studio Business, transferring ownership of the legal entity, or transferring the Franchise Agreement. A non-refundable deposit of $1,000 is due when submitting the transfer application, with the remaining balance due upon executing the transfer documents.
Broker fees are the actual costs Extreme Art Studio incurs for brokerage commissions, finder's fees, or similar charges if the franchisee transfers their Extreme Art Studio Business to a third party or purchaser. The franchisee is responsible for reimbursing Extreme Art Studio for these costs. Additionally, the franchisee will have to cover the costs of any required training.
Prospective franchisees should consider these potential additional costs when evaluating the financial implications of transferring their Extreme Art Studio franchise. Understanding these fees is crucial for financial planning and decision-making related to the transfer of ownership.