What is the estimated high-end total initial investment for an Extreme Art Studio franchise?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Expenditure (1) | Amount | Method of Payment | When Due | To Whom Payment is to be Paid(1) | |
|---|---|---|---|---|---|
| Low | High | ||||
| Architect(19) | $5,000 | $12,000 | As Incurred | As Incurred | Approved Suppliers |
| Liquor License(20) | $0 | $15,000 | As Incurred | As Incurred | Third Parties, Government Agencies |
| TOTAL | $119,030 | $355,455 | |||
| ESTIMATED | |||||
| INITIAL | |||||
| INVESTMENT(21) | |||||
| Standard 2 Franchise | If you purchase a Standard 2 Franchise under the Multi-Franchise Addendum, you will incur all of the costs listed above for each Extreme Art Studio Business you open except that the Initial Franchise Fee will total $80,000 and allow you to open up to two Extreme Art Studio Businesses. If you were to open two Extreme Art Studio Businesses using the same estimated initial expenses above, we estimate this total cost to range between $227,860 to $701,210. These costs may increase in the future depending on when you open the additional Extreme Art Studio Businesses. | ||||
| Standard 3 Franchise | If you purchase a Standard 3 Franchise under the Multi-Franchise Addendum, you will incur all of the costs listed above for each Extreme Art Studio Business you open except that the Initial Franchise Fee will total $110,000 and allow you to open up to three Extreme Art Studio Businesses. If you were to open three Extreme Art Studio Businesses using the same estimated initial expenses above, we estimate this total cost to range between $331,690 to $1,040,165. These costs may increase in the future depending on when you open the additional Extreme Art Studio Businesses |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–23)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, the estimated total initial investment ranges from $119,030 to $355,455. This encompasses various expenditures necessary to establish and begin operating an Extreme Art Studio Business. These figures represent Extreme Art Studio's best estimate of the costs a franchisee may incur. However, because neither Extreme Art Studio nor its affiliates operate Extreme Art Studio Businesses, and because Extreme Art Studio has not yet sold any franchised Extreme Art Studio Businesses, these estimates rely on an affiliate's experience with Kidcreate franchises.
It's important to note that these are estimates, and actual costs may vary. Factors such as the size and condition of the leased premises, local supply and demand for materials and labor, local building and fire code requirements, and lease terms can all influence the final amount. The FDD advises prospective franchisees to carefully review these figures with a business advisor before making any decision to purchase the franchise.
For franchisees considering a multi-unit approach, the FDD provides additional estimates. A Standard 2 Franchise, allowing the franchisee to open two Extreme Art Studio Businesses, is estimated to cost between $227,860 and $701,210. A Standard 3 Franchise, for three businesses, ranges from $331,690 to $1,040,165. These costs may also increase in the future depending on when the franchisee opens the additional Extreme Art Studio Businesses.