What is the 'Extreme Art Business' referring to in the Extreme Art Studio Module Amendment?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
WHEREAS, on [date], Franchisor and Franchisee entered into a franchise agreement (the "Franchise Agreement") pursuant to which Franchisee is granted the right, and undertook the obligation, to open and operate a Extreme Art Studio franchised business using either: (i) an in-studio format operated from a location; (ii) a mobile unit location; or (iii) a remote format that does not have a physical location as indicated in the Franchise Agreement (the "Extreme Art Business"); WHEREAS, Franchisee desires to add one or more additional service modules (each a "Module") to the Extreme Art Business as indicated below. 2. MODULE SELECTION AND INITIAL MODULE FEE . Franchisee wishes to add the services and offer the Module(s) through the Extreme Art Business in accordance with the terms of this Module Amendment. The Module(s) that Franchisee desires to add to the Extreme Art Business are as follows (check all that apply): | Craft Academy ($15,000 initial module fee) | Kidscientific ($20,000 initial module fee) | Little Hands Discovery ($10,000 initial module fee) Total initial module fee: $ Franchisee shall pay the total initial module fee to Franchisor upon entering into this Module Amendment. Franchisee acknowledges and agrees that the initial module fee payment is not refundable under any circumstances.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, the 'Extreme Art Business' refers to the franchised business operated by the franchisee under the franchise agreement. This business operates as an Extreme Art Studio, and can take one of three formats: an in-studio format at a physical location, a mobile unit, or a remote format without a physical location. The specific format is determined as indicated in the Franchise Agreement.
The Module Amendment allows franchisees to add additional service modules to their existing Extreme Art Studio Business. These modules, such as Craft Academy, Kidscientific, or Little Hands Discovery, offer additional services to customers. By adding these modules, franchisees can expand their service offerings and potentially increase revenue streams within their existing Extreme Art Studio Business.
Before adding any modules, the franchisee must pay an initial module fee, which is not refundable under any circumstances. For example, the Craft Academy module has a $15,000 initial module fee, Kidscientific has a $20,000 initial module fee, and Little Hands Discovery has a $10,000 initial module fee. The franchisee must select the desired modules and pay the corresponding total initial module fee to Extreme Art Studio Franchising, LLC.