When are the implementation fees payable for each Extreme Art Studio Business?
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 Extreme Art Studio's 2024 Franchise Disclosure Document, franchisees must pay implementation fees for database management software (DB Software) and class registration software (CR Software). These fees are $500 for the CR Software and $1,500 for the DB Software, totaling $2,000.
These implementation fees are payable upon the execution of the Franchise Agreement for each Extreme Art Studio Business the franchisee has the right to open. This means that if a franchisee purchases a Standard 2 or Standard 3 Franchise package, which grants the right to open multiple Extreme Art Studio Businesses, the implementation fees for each additional business are due when the franchisee signs each Extreme Art Rider.
These payments are uniform and non-refundable, regardless of whether the franchisee opens the studio or not. This is a standard practice in franchising, where initial fees are typically earned upon payment to cover the franchisor's costs of setting up the franchisee.