What is the current monthly Technology Fee for an initial Extreme Art Studio Business?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
Royalty. If you use marketing materials that we have not approved in accordance with Section 9.2.3, we may charge you a fee of $500 per occurrence.
- 3.4 TECHNOLOGY FEES. You agree to pay us or our affiliate the then-current monthly technology fee ("Technology Fee"), currently $400 per month for your initial Extreme Art Studio Business and $300 per month for each additional Extreme Art Studio Business under a Standard Franchise, for use of our online systems, website, applications, email, data sharing, integration and maintenance of DB Software (as defined in Section 3.6), learning management software, search engine optimization for lead generation, and other Internet-related functions. You will be responsible for any increase in fees that result from any upgrades, modifications or additional systems or software and for any increases in fees from thirdparty vendors. We reserve the right to: (i) change or add approved suppliers or vendors of these services at any time, in our sole discretion; (ii) enter into a master license agreement with any software or technology supplier and sublicense the software or technology to you, in which case we may charge you for all amounts that we must pay to the licensor based on your use of the software or technology; (iii) create proprietary software or technology that must be used by Extreme Art Studio franchisees, in which case we may require that you enter into a license agreement with us and pay us reasonable initial and ongoing licensing, support and maintenance fees; and (iv) increase or decrease t
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 monthly technology fee. For the initial Extreme Art Studio Business, the current technology fee is $400 per month. This fee covers the use of Extreme Art Studio's online systems, website, applications, email, data sharing, integration and maintenance of DB Software, learning management software, search engine optimization for lead generation, and other Internet-related functions.
Extreme Art Studio reserves the right to modify the approved suppliers or vendors for these services at any time. They can also enter into master license agreements with software or technology suppliers and sublicense the software or technology to franchisees, potentially charging franchisees for the amounts Extreme Art Studio must pay to the licensor based on their use of the software or technology. Additionally, Extreme Art Studio can create proprietary software or technology that franchisees must use, requiring franchisees to enter into a license agreement and pay initial and ongoing licensing, support, and maintenance fees.
Extreme Art Studio retains the right to increase or decrease the technology fee and other technology and licensing expenses at any time, provided they give franchisees 30 days' written notice. Franchisees are also responsible for any fee increases resulting from upgrades, modifications, or additional systems or software, as well as any increases in fees from third-party vendors. This means that the franchisee's technology costs could fluctuate over time, impacting their operating expenses.