When are the DB Software and CR Software implementation fees payable 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 Extreme Art Studio's 2024 Franchise Disclosure Document, the implementation fees for both the DB Software and CR Software are due upon the execution of the Franchise Agreement. Specifically, these fees are payable when the agreement is signed for each Extreme Art Studio Business that the franchisee has the right to open.
For a prospective Extreme Art Studio franchisee, this means that the $1,500 DB Software implementation fee and the $500 CR Software implementation fee must be paid upfront when signing the Franchise Agreement. This applies not only to the initial studio but also to any subsequent studios opened under an Extreme Art Rider.
It is important to note that these implementation fees are nonrefundable, regardless of whether the studio eventually opens or not. This upfront payment is in addition to other initial costs, such as the initial franchise fee, and should be factored into the franchisee's initial investment calculations. Franchisees should ensure they have sufficient capital to cover these fees at the time of signing the agreement.