What is the estimated low and high cost for technology fees 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 | ||||
| Furniture, Fixtures, | $9,500 | $15,000 | As Incurred | As Incurred | Approved |
| and Equipment(2) | Suppliers | ||||
| Initial Inventory | $4,500 | $5,500 | As Incurred | As Incurred | Us and Approved |
| a |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–23)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio FDD, the estimated initial investment for technology fees ranges from $500 to $1,500. This estimate covers three months of Technology Fees. These fees are paid to Extreme Art Studio as incurred.
In addition to the general technology fees, Extreme Art Studio franchisees also pay for CR (Customer Relationship) Software and DB (Database) Software. The CR Software fee for three months is estimated to be between $105 and $1,605, while the DB Software fee for three months is estimated to be between $675 and $900. These fees are paid to approved suppliers as incurred.
These technology-related costs are part of the overall initial investment needed to start an Extreme Art Studio franchise. It's important for potential franchisees to consider these ongoing technology expenses when evaluating the financial feasibility of the franchise. The FDD also mentions that the CR Software fee currently ranges from $35 to $535 per month based on volume, and the DB Software Fee ranges from $225 to $300 per month, depending on the size of the database. These figures provide additional context for the monthly costs franchisees can expect after the initial three-month period covered in the initial investment estimate.