What is the estimated low-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) |
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 low-end total initial investment to open an Extreme Art Studio franchise is $119,030. This figure encompasses various startup expenses, such as architect fees, liquor licenses, and other essential costs required to launch the business. It is important to note that this is just an estimate, and the actual initial investment may vary.
The FDD provides a detailed breakdown of the different expenditure types that contribute to the total initial investment. These include costs like business licenses and permits ($50 to $300), professional fees ($1,000 to $2,500), signage ($2,500 to $12,000), computers and hardware ($1,000 to $2,000), and initial training expenses ($2,000 to $3,000). Additionally, there are ongoing fees such as technology fees ($500 to $1,500) and software fees for CR and DB software, as well as expenses for rent, security deposits, and utility deposits ($5,000 to $15,000).
Prospective franchisees should carefully review all the listed expenses and consider their specific circumstances, as costs can vary based on location, studio size, and other factors. The FDD also mentions optional modules that can add to the initial investment, with a high estimate of up to $47,250. It is advisable to consult with a business advisor to thoroughly assess these figures and make informed decisions before purchasing the franchise. Furthermore, the document emphasizes that these are estimates and that additional expenses may arise during the startup phase.