What is the current fee to implement the DB Software for an Extreme Art Studio?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
we may terminate this Franchise Agreement (or the Extreme Art Rider applicable thereto) upon such default. The Opening Extension Fees are nonrefundable.
- 3.6 IMPLEMENTATION FEES. Prior to opening each Extreme Art Studio Business, you must: (i) purchase a license for database management software ("DB Software") from third parties we designate; and (ii) pay us our then-current fee to implement the DB Software (currently $1,500). You must also pay us our then-current fee to implement your class registration software ("CR Software") (currently $500). These fees are separately payable for each Extreme Art Studio Busine
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, franchisees must pay a fee to implement the DB Software. This fee is paid to Extreme Art Studio and is currently $1,500. This fee is due upon the execution of the Franchise Agreement and each Extreme Art Rider applicable to each Extreme Art Studio Business. This fee is nonrefundable.
In addition to the implementation fee, Extreme Art Studio franchisees also pay a monthly technology fee for the use of online systems, website, applications, email, data sharing, integration, and maintenance of DB Software. This technology fee is currently $400 per month for the initial Extreme Art Studio Business and $300 per month for each additional Extreme Art Studio Business under a Standard Franchise. Franchisees are responsible for any increases in fees that result from upgrades, modifications, or additional systems or software and for any increases in fees from third-party vendors.
Extreme Art Studio also requires franchisees to purchase a license for database management software (DB Software) from third parties they designate. Franchisees also agree to pay Extreme Art Studio's designated vendor the then-current DB Software Fee, which is currently $225-$300 per month. The DB Software Fee is due the first day of the month after signing the Franchise Agreement and monthly thereafter within five days of the end of the calendar month.