Are Extreme Art Studio franchisees required to purchase the implementation services from Extreme Art Studio?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
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You must purchase certain products and supplies that contain our Marks. You must purchase the implementation services from us. We are currently the only approved supplier of this item. We and our affiliates reserve the right to become a designated supplier of additional products, supplies, or materials in the future. You may also purchase Uniforms at any time, but are not required to do so. You may, but are not required to use our approved construction management supplier to manage the entire build out and construction of your Extreme Art Studio Business and pay a construction management fee of $20,000 paid directly to
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 23–26)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, franchisees are required to purchase implementation services directly from Extreme Art Studio. The document specifies that Extreme Art Studio is currently the only approved supplier for these services. This means a new franchisee does not have the option to source these services from an alternative provider.
This requirement ensures that all Extreme Art Studio locations adhere to a standardized implementation process, which the franchisor believes is crucial for maintaining brand consistency and quality. While this mandate limits the franchisee's choice, it also means they will receive a pre-approved, standardized service, potentially reducing the risk of issues during the studio setup phase.
Beyond the implementation services, franchisees may, but are not required to, use Extreme Art Studio's approved construction management supplier for the studio build-out, with a fee of $20,000 paid directly to the supplier. However, the FDD indicates that franchisees are not obligated to purchase other products, services, supplies, or operating assets from Extreme Art Studio or its designated suppliers, except for certain products and supplies that contain Extreme Art Studio's marks. This provides some flexibility in sourcing other operational needs, although the franchisor retains the right to designate exclusive suppliers for certain items in the future.