What are the implementation fees for the class registration software for an Extreme Art Studio franchise?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
tion Fees*
Prior to opening your Extreme Art Studio Business, you must purchase a license for database management software ("DB Software") from suppliers we designate. You must also pay us the following implementation fees for us to implement the DB Software and class registration software ("CR Software") for you: (a) $500 for your CR Software; and (b) $1,500 for your DB Software. These fees are payable for each Extreme Art Studio Business you have the right to open, are payable upon execution of the Franchise Agreement, and are non-refundable. If you purchase a Standard 2 Franchise or Standard 3 Franchise package, you will pay these implementation fees for the additional Extreme Art Studio Businesses when you sign each Extreme Art Rider. These payments are uniform and non-r
Source: Item 5 — INITIAL FEES (FDD pages 11–13)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, franchisees must pay implementation fees for both database management software and class registration software. Specifically, Extreme Art Studio charges $500 to implement the class registration software (CR Software). In addition to the CR Software implementation fee, there is also a $1,500 implementation fee for the database management software (DB Software). Therefore, the total implementation fees for both software systems is $2,000.
These fees are payable for each Extreme Art Studio Business the franchisee has the right to open. The fees are due upon execution of the Franchise Agreement. If a franchisee purchases a Standard 2 or Standard 3 Franchise package, they will pay these implementation fees for the additional Extreme Art Studio Businesses when they sign each Extreme Art Rider.
It is important to note that these implementation fees are non-refundable, regardless of whether the franchisee successfully opens and operates the Extreme Art Studio Business. This is a standard practice in franchising, as these fees cover the franchisor's costs in setting up the franchisee's systems. Franchisees should factor these costs into their initial investment calculations and ensure they have sufficient capital to cover these expenses.