What is the estimated low and high cost for a liquor license for an Extreme Art Studio?
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 | Franchisees are not required to serve or allow alcohol at the Studio.
These amounts are the estimated cost of obtaining a license or permit from a state agency to sell alcoholic
beverages at your Extreme Art Studio Business, but not the price to purchase a liquor license from an existing licensee in states that permit that practice. In some cities/markets, it may be necessary to purchase a liquor license. In our experience to date, the cost to obtain a liquor license will vary substantially, depending on the city and state in which the Studio is located and the variety of liquor types being sold.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–23)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, the estimated cost for a liquor license ranges from $0 to $15,000. This cost is incurred as needed and paid to third parties or government agencies.
The FDD notes that franchisees are not required to serve or allow alcohol at the Studio. The cost to obtain a liquor license can vary significantly depending on the city and state in which the studio is located, as well as the variety of liquor types being sold.
This wide range reflects the varying regulations and market conditions across different locations. In some areas, obtaining a liquor license might be straightforward and relatively inexpensive, while in others, it could be a complex and costly process. The estimate does not include the price to purchase a liquor license from an existing licensee in states that permit that practice.
Prospective franchisees should investigate the specific requirements and costs associated with obtaining a liquor license in their desired location. This involves contacting local and state authorities to understand the regulations and potential expenses involved. If the franchisee intends to serve alcohol, they should factor this cost into their initial investment and business plan.