From whom must an Extreme Art Studio franchisee purchase their initial inventory and supplies?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
You must have opening inventory and supply items on hand before you open your Extreme Art Studio Business. You will purchase branded opening supplies and
- inventory from us.
The remainder of the purchases will be made from approved suppliers and/or in accordance with our standards and specifications.
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, franchisees are required to purchase branded opening supplies and inventory from Extreme Art Studio. The remaining inventory and supplies can be purchased from approved suppliers or in accordance with the standards and specifications set by the franchisor.
This means that a portion of the initial investment for an Extreme Art Studio franchise will be directly paid to the franchisor for these mandatory supplies. The estimated cost for initial inventory and supplies ranges from $4,500 to $5,500. This cost is part of the overall initial investment, which ranges from $119,030 to $355,455.
Franchisees have some flexibility in sourcing the remaining supplies from approved vendors, potentially allowing for some cost comparison and negotiation. However, they must adhere to Extreme Art Studio's standards, ensuring consistency across all franchise locations. It is important for prospective franchisees to understand which suppliers are approved and what standards must be met to maintain compliance with the franchise agreement.