When is the initial franchise fee due for an Extreme Art Studio?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
INVESTMENT
| Type of Expenditure (1) | Amount | Method of Payment | When Due | To Whom Payment is to be Paid(1) | |
|---|---|---|---|---|---|
| Low | High | ||||
| Initial Franchise | $45,000 | $45,000 | Lump sum | Upon signing Franchise | Us |
| Fee(1) | Agreement | ||||
| Furniture, Fixtures, | $9,500 | $15,000 | As Incurred | As Incurred | Approved |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 18–23)
What This Means (2024 FDD)
According to Extreme Art Studio's 2024 Franchise Disclosure Document, the initial franchise fee of $45,000 for a single Extreme Art Studio Business is not explicitly listed in the table provided. However, the DB Software Implementation Fee of $1,500 and the CR Software Implementation Fee of $500 are due upon signing the Franchise Agreement.
While the table specifies when certain fees are due, it omits the due date for the initial franchise fee itself. This means prospective franchisees need to confirm with Extreme Art Studio the exact payment schedule for the $45,000 initial franchise fee. Understanding the payment terms is crucial for financial planning and ensuring sufficient capital is available when required.
It is important to note that the timing of payments can significantly impact a franchisee's cash flow. Franchisees should clarify whether the initial franchise fee is due in a lump sum upon signing the agreement or if there are installment options available. This information is vital for budgeting and managing the initial investment effectively.