What is the estimated low and high cost for the construction management fee for an Extreme Art Studio?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
INVESTMENT
| Type of Expenditure (1) | Amount | Method of Payment | When Due | To Whom Payment is to be Paid(1) | |
|---|---|---|---|---|---|
| Low | High | ||||
| Initial Franchise | $45,000 | $45,000 | Lump sum | Upon signing Franchise | Us |
| Fee(1) | Agreement |
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 cost for the construction management fee ranges from $0 to $22,000. This fee covers the management of the studio's build-out, including permitting and construction management, as well as overseeing general contractors and subcontractors.
The construction management fee is optional, meaning franchisees can choose whether or not to utilize the franchisor's approved construction management supplier. If a franchisee decides to manage the construction themselves or use an alternative supplier, they would not incur this fee.
The fee is paid to approved suppliers as incurred throughout the construction process. This suggests that franchisees will need to budget for this expense and potentially secure financing to cover these costs as they arise during the build-out phase. The wide range in cost indicates that the complexity and scope of the construction project can significantly impact the final fee. Therefore, prospective franchisees should carefully evaluate their construction needs and obtain detailed quotes to accurately estimate this expense.