What is the cost for optional modules for an Extreme Art Studio franchise?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Local and Regional Advertising Cooperatives(3) | Established by cooperative members, between 0.5% and 1% of Gross Sales | Same as Royalty (or as we designate) | We currently do not have a cooperative but reserve the right to require one to be established in the future. Each Extreme Art Studio Business we own that exists within the cooperative's area will contribute to the cooperative on the same basis as franchisees. We anticipate that each Extreme Art franchisee and each Extreme Art Studio Business that we own will have one vote for each Extreme Art operated in the designated market. Item 11 contains more information about advertising cooperatives. |
| Optional Modules | $10,000 to $20,000 depending on the module | At the time you sign the sign the Module Amendment | In addition to the standard franchise offering, franchisees have the option to purchase up to three different curriculum Modules. These modules are designed to expand the range of services you can offer to your customers and can be offered in classes, camps, workshops parties and events. See Item 5 for more information on the optional Modules. |
| Insurance | Reimbursement of our costs, plus a 20% administration charge | On demand | If you fail to obtain insurance, we may obtain insurance for you, and you must reimburse us for the cost of insurance obtained, plus twenty percent (20%) of the premium as an administrative cost of obtaining the insurance. |
Source: Item 6 — OTHER FEES (FDD pages 13–18)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, franchisees have the option to purchase up to three different curriculum modules to expand their service offerings. The cost for these optional modules ranges from $10,000 to $20,000 per module, with the specific price depending on the module selected. This cost is due at the time the franchisee signs the Module Amendment.
In addition to the initial cost of the module, Extreme Art Studio franchisees will also incur a Module Technology Fee. This ongoing fee is $250 per month per module and is due at the same time as the standard Technology Fee. The Technology Fee is due on the 1st day of the second month after signing the Franchise Agreement, and monthly thereafter within five days of the end of the calendar month.
Prospective franchisees should carefully consider the costs and potential benefits of adding optional modules to their Extreme Art Studio business. While these modules can expand the range of services offered and potentially increase revenue, they also add to the initial investment and ongoing monthly expenses. Reviewing Item 5 of the FDD, as referenced in the table, will provide more information on the optional modules.