What is the Franchisee required to do in order to add a Module to their Extreme Art Studio franchise?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
- 3.7 MODULES.
You may also, at your option purchase the right to add modules of certain additional services to be offered at your Extreme Art Business, which are currently Craft Academy, Kidscientific and Little Hands Discovery.
In order to add any module, you will enter into our then-current form of Module Amendment with us, the current form of which is attached to the Franchise Disclosure Document in Exhibit H.
You acknowledge and agree that the services and curriculum offered under the modules are also offered by our affiliate's franchisees, and may be offered by competitive brands that we and our affiliates control and franchise, both within and outside of the Territory, regardless of whether you elect to add any or all modules to your Extreme Art Business.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, a franchisee has the option to purchase the right to add modules offering additional services to their Extreme Art Studio business. Currently, these modules include Craft Academy, Kidscientific, and Little Hands Discovery. To add any of these modules, the franchisee must enter into the then-current form of Module Amendment with Extreme Art Studio. The current form of this amendment is attached as Exhibit H to the Franchise Disclosure Document.
The Module Amendment outlines the terms and conditions for adding the selected module(s) to the existing franchise agreement. Franchisees must indicate which module(s) they wish to add and pay the corresponding initial module fee. The initial module fees are $15,000 for Craft Academy, $20,000 for Kidscientific, and $10,000 for Little Hands Discovery. The franchisee is required to pay the total initial module fee upon entering into the Module Amendment, and this fee is non-refundable under any circumstances.
It is important to note that the services and curriculum offered under these modules may also be offered by franchisees of Extreme Art Studio's affiliates. Additionally, these services may be offered by competitive brands that Extreme Art Studio and its affiliates control and franchise, both within and outside the franchisee's territory. This means that even if a franchisee chooses to add a module to their Extreme Art Studio business, they may still face competition from other businesses offering similar services.