What other fees besides those already mentioned might Extreme Art Studio franchisees have to pay?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
You must begin offering services from the Studio within 12 months of signing the Franchise Agreement. Factors that affect this length of time include securing any necessary financing; selecting the Studio site; negotiating the lease; obtaining necessary permits; completing leasehold improvements; delivery of equipment, inventory and supplies; completing our initial training program; and hiring and training employees, If you fail to open your Extreme Art Studio Business within 12 months of signing the Franchise Agreement or Extreme Art Rider, we may terminate your Franchise Agreement (without providing you a refund) or you will be required to pay us an "Opening Extension Fee" of $1,000 per month until you open or until the Franchise Agreement is terminated.
You will pay us the then-current technology fee (currently $400 per month for the first Extreme Art Studio Business and the discounted rate of $300 per month for each additional Extreme Art Studio Business), which includes your use of our online systems; website; applications; email; data sharing; integration and maintenance of DB Software; learning management software; search engine optimization for lead generation; and other Internet-related functions ("Technology Fee"). You will also pay an additional Technology Fee of $250 per month for each additional Module that you purchase. You will be responsible for implementation fees charged for the set-up of the DB Software ($1,500) and the CR Software ($500). You will be responsible for the monthly fees to license the CR Software. Currently, those fees range from $5 to $535 per month. The monthly CR Software Fee will be reevaluated at the end of each calendar year based on volume. You will also be responsible for monthly fees to license the DB Software ranging from $225 to $300 per month.
If you request, or if we determine that it is appropriate or necessary, in our sole discretion, whether as a result of observation or otherwise during the operation of your Extreme Art Studio Business, we can require that you (or, if you are not an individual, then a managing member, partner, or officer of you designated by you to participate personally in the Extreme Art Studio Business) and/or any of your managers, attend and successfully complete additional training, including online computer training designated by us. You will be charged our then-current costs (currently $200 per person per day) for any additional training or assistance. You will be responsible for all of the travel and living expenses that we incur if we send a representative to provide on-site training or assistance. You will be responsible for your travel expenses and living expenses, and those of your representatives, if such additional training or assistance is not provided on-site at your Extreme Art Studio Business. You and your operating owner, if applicable, must attend mandatory conferences at locations that we designate, and you must pay any conference fees and travel expenses. You will pay all required conference fees.
In addition to any Brand Fund Contributions, each Extreme Art Studio Business you operate must spend $500 per month per Extreme Art Studio Business to advertise and promote your Extreme Art Studio Business (including the costs of online advertising) ("Local Advertising Requirement"). If you fail to spend
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 27–37)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, franchisees may incur several additional fees depending on circumstances. If an Extreme Art Studio franchisee fails to open their business within 12 months of signing the Franchise Agreement, they may be required to pay an "Opening Extension Fee" of $1,000 per month until the business opens or the agreement is terminated.
Extreme Art Studio franchisees are also responsible for technology-related fees. This includes a monthly technology fee, currently $400 per month for the first Extreme Art Studio Business and a discounted rate of $300 per month for each additional Extreme Art Studio Business. There is also an additional Technology Fee of $250 per month for each additional Module purchased. Franchisees are also responsible for implementation fees for the set-up of the DB Software ($1,500) and the CR Software ($500). They will also be responsible for the monthly fees to license the CR Software, which currently range from $5 to $535 per month, and monthly fees to license the DB Software ranging from $225 to $300 per month.
Furthermore, if Extreme Art Studio requires a franchisee (or their manager) to attend additional training, the franchisee will be charged the then-current costs, which are currently $200 per person per day. The franchisee is also responsible for travel and living expenses for both themselves and any Extreme Art Studio representatives providing on-site training or assistance. Franchisees must also attend mandatory conferences and pay any associated conference fees and travel expenses.
Extreme Art Studio franchisees must spend $500 per month on local advertising. If they fail to do so, they will be required to pay the difference to Extreme Art Studio or the Brand Fund. These fees, along with the Brand Fund contribution of 1% of gross sales, contribute to the overall cost of operating an Extreme Art Studio franchise.