Is the franchisee responsible for increases in Technology Fees for Extreme Art Studio?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
You will be responsible for any increase in fees that result from any upgrades, modifications or additional systems or software and for any increases in fees from thirdparty vendors.
We reserve the right to: (i) change or add approved suppliers or vendors of these services at any time, in our sole discretion; (ii) enter into a master license agreement with any software or technology supplier and sublicense the software or technology to you, in which case we may charge you for all amounts that we must pay to the licensor based on your use of the software or technology; (iii) create proprietary software or technology that must be used by Extreme Art Studio franchisees, in which case we may require that you enter into a license agreement with us and pay us reasonable initial and ongoing licensing, support and maintenance fees; and (iv) increase or decrease the technology fee and other technology and licensing and expenses that you are required to pay under this Franchise Agreement at any time, upon 30 days' written notice to you.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, franchisees are responsible for increases in Technology Fees. The franchisee is responsible for increases in fees that result from any upgrades, modifications, or additional systems or software. They are also responsible for increases in fees from third-party vendors.
Extreme Art Studio retains the right to change or add approved suppliers or vendors of these services at any time, at their discretion. They can also enter into a master license agreement with any software or technology supplier and sublicense the software or technology to the franchisee, in which case they may charge the franchisee for all amounts that they must pay to the licensor based on the franchisee's use of the software or technology.
Extreme Art Studio also has the right to create proprietary software or technology that must be used by Extreme Art Studio franchisees, in which case they may require that the franchisee enter into a license agreement with them and pay reasonable initial and ongoing licensing, support, and maintenance fees. Furthermore, Extreme Art Studio can increase or decrease the technology fee and other technology and licensing and expenses that the franchisee is required to pay under the Franchise Agreement at any time, upon 30 days' written notice to the franchisee. This means that the franchisee should be prepared for potential increases in technology-related costs throughout the term of the franchise agreement.