Can Extreme Art Studio change the manner in which the Royalty fee is paid?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
suppliers. We currently require you to pay fees and other amounts due to us or our affiliates via EFT or other similar means. You are required to complete the EFT authorization (in the form attached to this Franchise Disclosure Document in Exhibit H). We can require an alternative payment method or payment frequency for any fees or amounts owed to us or our affiliates under the Franchise Agreement. All fees are current as of the Issuance Date of this Franchise Disclosure Document. Certain fees that we have indicated may increase over the term of the Franchise Agreement. All fees are current as of the Issuance Date of this Franchise Disclosure Document. Certain fees that we have indicated may increase over the term of the Franchise Agreement.
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- Royalty.
Source: Item 6 — OTHER FEES (FDD pages 13–18)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, Extreme Art Studio has the right to modify the payment method for royalty fees. The franchisee is currently required to make payments via Electronic Funds Transfer (EFT) or similar methods. Franchisees must complete an EFT authorization form. However, Extreme Art Studio retains the authority to mandate alternative payment methods or payment frequencies for any fees owed under the Franchise Agreement.
This flexibility allows Extreme Art Studio to adapt to changing technological or business environments, potentially requiring franchisees to adopt new payment systems or schedules. For a prospective franchisee, this means being prepared to adjust their payment processes if Extreme Art Studio implements a different payment approach.
It is important to note that all fees paid to Extreme Art Studio or its affiliates are uniform and non-refundable under any circumstances once paid. Fees paid to vendors or other suppliers may be refundable depending on the vendors and suppliers.