For an Extreme Art Studio franchise, to whom is the liquor license fee paid?
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 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–23)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, the liquor license fee, which ranges from $0 to $15,000, is paid to third parties and government agencies. This fee is incurred as needed. It's important to note that franchisees are not required to serve or allow alcohol at the studio.
The FDD clarifies that these costs are estimates for obtaining a license or permit from a state agency to sell alcoholic beverages, but do not include the price to purchase a liquor license from an existing licensee in states that permit that practice. The cost to obtain a liquor license can vary substantially depending on the city and state in which the studio is located and the variety of liquor types being sold.
Prospective Extreme Art Studio franchisees should investigate the specific requirements and costs associated with obtaining a liquor license in their desired location, considering local regulations and the types of alcoholic beverages they plan to serve. This due diligence will help in accurately estimating the initial investment and understanding the operational requirements related to serving alcohol.