When is the first Technology Fee payment due for an Extreme Art Studio franchise?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Type of Fee(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Technology Fee | Then-current fee (currently $400 per month) for the first Extreme Art Studio Business and the discounted rate for each additional Extreme Art Studio Business (currently $300 per month per additional Extreme Art Studio Business) | The first payment is due on the 1st day of the second month after signing the Franchise Agreement. Thereafter, monthly within five days of the end of the calendar month | For 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. We reserve the right to increase or decrease this fee, upon 30 days' written notice, in the event we offer updated or additional software or technology for use in the Extreme Art Studio Business or in the event of increases from third party |
Source: Item 6 — OTHER FEES (FDD pages 13–18)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, the initial Technology Fee payment is due on the 1st day of the second month after the franchisee signs the Franchise Agreement. The then-current fee is $400 per month for the first Extreme Art Studio Business. If a franchisee operates additional Extreme Art Studio Businesses, the discounted rate is currently $300 per month for each additional studio.
This fee covers the franchisee's use of Extreme Art Studio's 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. It is important to note that Extreme Art Studio retains the right to modify the Technology Fee, providing 30 days' written notice, if they update or add software or technology or if third-party supplier costs increase.
For a prospective Extreme Art Studio franchisee, this means budgeting for the $400 Technology Fee starting in the second month of operation. Franchisees should also be aware that this fee may change over time, and they should factor in potential increases when forecasting their expenses. Understanding the scope of services covered by the Technology Fee is crucial to assessing its value and how it supports the franchisee's business operations.