What does the Extreme Art Studio franchisee wish to add by using the Module Amendment?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
WHEREAS, Franchisee desires to add one or more additional service modules (each a "Module") to the Extreme Art Business as indicated below. | 2. MODULE SELECTION AND INITIAL MODULE FEE . Franchisee wishes to add the services and offer the Module(s) through the Extreme Art Business in accordance with the terms of this Module Amendment. The Module(s) that Franchisee desires to add to the Extreme Art Business are as follows (check all that apply): | Craft Academy ($15,000 initial module fee) | Kidscientific ($20,000 initial module fee) | Little Hands Discovery ($10,000 initial module fee)
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, a franchisee utilizes the Module Amendment to incorporate additional service modules into their Extreme Art Business. These modules enhance the services offered by the franchise.
The available modules include Craft Academy, Kidscientific, and Little Hands Discovery. Each module has an initial fee: Craft Academy at $15,000, Kidscientific at $20,000, and Little Hands Discovery at $10,000. These fees are non-refundable and must be paid upon entering the Module Amendment.
By adding modules, the Extreme Art Studio franchisee agrees to increased reporting requirements, providing detailed cost and sales data related to the modules to the franchisor. The franchisee also acknowledges that they will not receive any exclusive territorial rights for these modules and may face competition from other franchisees or brands, including Kidcreate Studio franchisees, offering similar curriculum, even within their territory. The franchisee also pays a $250 monthly Module Technology Fee, in addition to other fees, and royalties and brand fund contributions will be calculated based on revenues from the modules.